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-Refer to Exhibit 16-1

Question 40

Multiple Choice

-Refer to Exhibit 16-1.Suppose the economy is currently at point A on the short-run Phillips curve,SRPC<sub>1</sub>.What could get the economy to move to point B? A) an increase in aggregate demand combined with an unchanged expected inflation rate B) an increase in aggregate demand combined with a rise in the expected inflation rate C) a rise in the expected inflation rate D) a decrease in aggregate demand combined with an unchanged expected inflation rate E) none of the above
-Refer to Exhibit 16-1.Suppose the economy is currently at point A on the short-run Phillips curve,SRPC1.What could get the economy to move to point B?


A) an increase in aggregate demand combined with an unchanged expected inflation rate
B) an increase in aggregate demand combined with a rise in the expected inflation rate
C) a rise in the expected inflation rate
D) a decrease in aggregate demand combined with an unchanged expected inflation rate
E) none of the above

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