Which of the following would we not expect if government policy moved the economy up along a given short-run Phillips curve?
A)Teresa reads in the newspaper that the central bank recently raised the money supply.
B)Jackie gets fewer job offers.
C)Miguel makes larger increases in the prices at his health food store.
D)Julie's nominal wage increase is larger.

Question

Quizplus · Accepted Answer

Moving up along a given short-run Phillips curve implies higher inflation and lower unemployment. This would generally lead to more job offers (contrary to fewer as stated in option B), as employers are more likely to hire due to better economic conditions. The other options are consistent with moving up along the Phillips curve, as they reflect higher inflation (C and D) and an expansionary monetary policy (A).

Which of the Following Would We Not Expect If Government