(Figure: Understanding Phillips Curves Shifts 2) Which statement BEST describes a decision by Congress to move the economy from Phillips curve PC0 to Phillips curve PC1? 
A) Policymakers implemented expansionary fiscal policy, accepting more unemployment to reduce the rate of inflation.
B) Policymakers implemented contractionary fiscal policy, accepting a higher rate of inflation to reduce unemployment.
C) Policymakers implemented expansionary fiscal policy to reduce the expected inflation rate.
D) Policymakers implemented contractionary fiscal policy to decrease the expected inflation rate.
Correct Answer:
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Q43: The long-run Phillips curve
A) shows a tradeoff
Q55: Unanticipated inflation results in
A) increasing real wages.
B)
Q77: The stagflation of the 1960s and 1970s
Q110: (Figure: Determining Long-Run and Short-Run Economic Shifts)
Q115: (Figure: Understanding Economic Shifts) The graph depicts:
Q116: (Figure: Determining Long-Run and Short-Run Economic Shifts)
Q118: (Figure: Determining Long-Run and Short-Run Economic Shifts)
Q120: The long-run Phillips curve
A) is downward sloping,
Q164: The simultaneous occurrence of rising inflation and
Q167: Accelerating inflation causes nominal wages to rise,
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