Which of the following would we not expect if government policy moved the economy up along a given short-run Phillips curve?

Question

Quizplus · Accepted Answer

If government policy moves the economy up along a given short-run Phillips curve, we expect to see an increase in inflation (represented by higher prices) and possibly higher nominal wages (resulting from decreased unemployment). Therefore, A, C, and D are all possible outcomes. However, we would not expect to see a decrease in job offers (as in choice B) as this would indicate a shift in the Phillips curve rather than a movement along it.

Which of the Following Would We Not Expect If Government