In the United States during the late 1990s, the unemployment rate fell from previous years and the inflation rate was lower than in previous years. This set of events is best described by saying that the
A) long-run Phillips curve shifted rightward.
B) economy moved to a lower point on its short-run Phillips curve but the short-run Phillips curve did not shift.
C) short-run Phillips curve shifted downward.
D) short-run Phillips curve shifted upward.
E) economy moved to a higher point on its short-run Phillips curve but the short-run Phillips curve did not shift.
Correct Answer:
Verified
Q61: The natural rate hypothesis states that when
Q62: When people use all the relevant data
Q63: When the expected inflation rate--------------------, the short-run
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