The increased participation rate of women in the labour force has resulted in:
A) a movement down along the Phillips curve.
B) a shift in the Phillips curve to the right.
C) a shift in the Phillips curve to the left.
D) a movement up along the Phillips curve.

Question

Quizplus · Accepted Answer

The increased participation rate of women in the labour force has resulted in a shift in the Phillips curve to the right. This is because the increased supply of labour has led to a decrease in the equilibrium wage rate, which in turn has led to a decrease in the unemployment rate.

The Increased Participation Rate of Women in the Labour Force