If the Reserve Bank tries to lower the unemployment rate so it is lower than the natural unemployment rate, in the short run before the expected inflation rate changes, the SRPC ________ and the LRPC ________.
A) does not change; does not change
B) shifts downward; shifts leftward
C) shifts upward; does not change
D) does not change; shifts rightward
E) shifts downward; does not change
Correct Answer:
Verified
Q58: Both the long-run and the short-run Phillips
Q59: When the natural unemployment rate increases,
A) there
Q60: Q61: If the Reserve Bank lowers the inflation Q62: A country reports that its inflation rate Q64: If the inflation that results from targeting Q65: In the short run, an increase in Q66: If the Reserve Bank decides that it Q67: A major factor in determining the rational Q68: A rational expectation of the inflation rate
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