In the Long Run, What Are the Effects of a Decrease

question 170

Multiple Choice

In the long run, what are the effects of a decrease in the rate of growth of the money supply on the Phillips curves?

• A) It shifts both the long-run and the short-run Phillips curves right.
• B) It leaves the long-run Phillips curve unchanged and the short-run Phillips curve right.
• C) It shifts the long-run Phillips curve right and the short-run Phillips curve left.
• D) It leaves the long-run Phillips curve unchanged and shifts the short-run Phillips curve left.

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Definitions:

Electrical Engineer

A professional skilled in designing, developing, and maintaining electrical systems and components to required specifications, focusing on safety, reliability, and sustainability.

Leisure Time

Time available for relaxation or activities of choice not related to employment or compulsory activities.

Labor Supply Curve

A graph showing the relationship between the wage rate and the quantity of labor that workers are willing to provide at that rate.

Current Wage

The present amount of money that a worker receives in exchange for their labor, usually expressed per hour, day, or per work output.