Suppose the Long-Run Phillips Curve Shifts to the Left

question 183

Multiple Choice

Suppose the long-run Phillips curve shifts to the left. For any given rate of money growth and inflation, how would unemployment and output change?

• A) Unemployment would be higher, and output would be lower.
• B) Unemployment would be higher, and output would be higher.
• C) Unemployment would be lower, and output would be lower.
• D) Unemployment would be lower, and output would be higher.

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Definitions:

Poverty Rate

The percentage of the population that lives below the national poverty line, indicating the proportion of individuals or households with income levels insufficient to meet basic needs.

Consensus Crimes

Illegal acts that nearly all people agree are bad and harm society greatly. The state inflicts severe punishment for consensus crimes.

Inuit Communities

Indigenous peoples living in the Arctic regions of Canada, Greenland, and Alaska, known for their rich cultural heritage and adaptations to cold environments.

Deviant Act

An action that deviates from the societal norms, which can be criminal or non-criminal but is considered outside the boundaries of acceptable behavior in a community.