If the economy is at point A in the Phillips curve shown, and the government runs expansionary monetary policy, what prediction would you make for inflation?
A)It will increase.
B)It will decrease.
C)It will remain constant.
D)It will explode.

Question

If the economy is at point A in the Phillips curve shown, and the government runs expansionary monetary policy, what prediction would you make for inflation? 
A)It will increase. 
B)It will decrease. 
C)It will remain constant. 
D)It will explode.

Quizplus · Accepted Answer

The Answer of If the economy is at point A in the Phillips curve shown, and the government runs expansionary monetary policy, what prediction would you make for inflation? 
A)It will increase. 
B)It will decrease. 
C)It will remain constant. 
D)It will explode.

If the Economy Is at Point a in the Phillips