The figure given below shows the Phillips curves of the U.S.economy during early 1960s to late 1970s. Figure 14.2 Refer to Figure 14.2.If the natural rate of unemployment is 5 percent, which of the following would cause a movement along Phillips curve III from point A to point B?
A)An inward shift of the aggregate demand curve
B)An outward shift of the aggregate demand curve
C)A movement down along the aggregate supply curve
D)A movement down along the aggregate demand curve
E)A movement up along the aggregate demand curve

Question

The figure given below shows the Phillips curves of the U.S.economy during early 1960s to late 1970s. Figure 14.2  Refer to Figure 14.2.If the natural rate of unemployment is 5 percent, which of the following would cause a movement along Phillips curve III from point A to point B?
A)An inward shift of the aggregate demand curve 
B)An outward shift of the aggregate demand curve 
C)A movement down along the aggregate supply curve 
D)A movement down along the aggregate demand curve 
E)A movement up along the aggregate demand curve

Quizplus · Accepted Answer

The Answer of The figure given below shows the Phillips curves of the U.S.economy during early 1960s to late 1970s. Figure 14.2  Refer to Figure 14.2.If the natural rate of unemployment is 5 percent, which of the following would cause a movement along Phillips curve III from point A to point B?
A)An inward shift of the aggregate demand curve 
B)An outward shift of the aggregate demand curve 
C)A movement down along the aggregate supply curve 
D)A movement down along the aggregate demand curve 
E)A movement up along the aggregate demand curve

The Figure Given Below Shows the Phillips Curves of the U.S.economy