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:

Socially Optimal Price

The price of a product that results in the most efficient allocation of an economy’s resources and that is equal to the marginal cost of the product.

Unregulated Monopoly

A market structure in which a single supplier dominates the market without any government intervention or regulation.

Economically Efficient

A situation where resources are allocated in a way that maximizes the production of goods and services without wasting any resources.

Zero Economic Profits

A situation where a firm's total revenues exactly equal its total costs, indicating no supernormal profit but covering all operating expenses.