If the economy moves upward along its short-run Phillips curve, in the AS-AD diagram, this movement is shown by a
A) leftward shift of the AS curve and a movement along the AD curve.
B) rightward shift of the AS curve and a movement along the AD curve.
C) movement upward along the AS curve as a result of a rightward shift of the AD curve.
D) rightward shift of potential GDP.
E) movement downward along the AS curve as a result of a leftward shift of the AD curve.
Correct Answer:
Verified
Q47: According to the natural rate hypothesis, in
Q48: Suppose an economy experiences a permanent increase
Q49: Moving--------------------the short-run Phillips curve is equivalent to
Q50: Changes in which of the following shift
Q51: The short-run Phillips curve shows a relationship
Q53: Moving along the short-run Phillips curve, a
Q54: In 1981, the Fed
A)took no action so
Q55: The short-run Phillips curve tradeoff becomes less
Q56: Comparing the aggregate supply curve and the
Q57: Along a short-run Phillips curve, the
A)short-run benefit
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents