In the Long Run, What Will Shift the Long-Run Phillips

question 80

Multiple Choice

In the long run, what will shift the long-run Phillips curve to the right?

• A) an increase in the minimum wage
• B) an increase in the money supply
• C) a decrease in government spending
• D) tax cuts

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Definitions:

Property Taxes

Taxes paid by property owners, based on the value of their property, to fund public services and infrastructure.

Education

A process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various means such as teaching, training, storytelling, discussion, and directed research.

Regressive Tax

At the individual level, a tax whose average tax rate decreases as the taxpayer’s income increases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) falls as GDP rises.

Income Tax Base

The total amount of income on which an individual or entity is required to pay income tax.