On the modern Phillips curve,the initial impact of government policies to stimulate the economy is shown by ________.
A)an upward movement along the Phillips curve to a higher inflation rate
B)an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate
C)a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate
D)a downward movement along the Phillips curve to higher unemployment rates
E)none of the above

Question

Quizplus · Accepted Answer

The modern Phillips curve suggests that stimulating the economy initially leads to higher inflation and lower unemployment, represented by an upward movement along the curve.

On the Modern Phillips Curve,the Initial Impact of Government Policies