Which of the following would move the economy down and to the right along a short run Phillips Curve?
A)Increases in the required reserve ratio by the Fed.
B)Increases in taxes by the federal government.
C)Increases in the interest rate that the Fed pays on bank reserves.
D)All of the above.

Question

Which of the following would move the economy down and to the right along a short run Phillips Curve?​
A)​Increases in the required reserve ratio by the Fed.
B)​Increases in taxes by the federal government.
C)​Increases in the interest rate that the Fed pays on bank reserves.
D)​All of the above.

Quizplus · Accepted Answer

All of the options (A, B, C) involve contractionary policies that would decrease aggregate demand, leading to lower inflation and higher unemployment, thus moving the economy down and to the right along the short-run Phillips Curve.

Which of the Following Would Move the Economy Down and to the Right