Suppose a middle-class tax cut increases consumption expenditures.Which of the following would you expect to occur as a result of this change?
A)The economy will move up and to the left along the short-run Phillips Curve.
B)The economy will move down and to the right along the short-run Phillips Curve.
C)The short-run Phillips Curve will shift to the left.
D)The short-run Phillips Curve will shift to the right.

Question

Suppose a middle-class tax cut increases consumption expenditures.Which of the following would you expect to occur as a result of this change?
A)The economy will move up and to the left along the short-run Phillips Curve.
B)The economy will move down and to the right along the short-run Phillips Curve.
C)​The short-run Phillips Curve will shift to the left.
D)​The short-run Phillips Curve will shift to the right.

Quizplus · Accepted Answer

The Answer of Suppose a middle-class tax cut increases consumption expenditures.Which of the following would you expect to occur as a result of this change?
A)The economy will move up and to the left along the short-run Phillips Curve.
B)The economy will move down and to the right along the short-run Phillips Curve.
C)​The short-run Phillips Curve will shift to the left.
D)​The short-run Phillips Curve will shift to the right.

Suppose a Middle-Class Tax Cut Increases Consumption Expenditures