"All for One, but None for All

question 6

Multiple Choice

"All for One, but None for All"
In an article regarding how Great Britain and France are addressing the economic crisis in 2008, Brit prime minister "is eager to encourage consumer spending" while France's president "wants to boo investment in both the private and public sectors." Both leaders are concerned because "hardly a da by without some manufacturing company announcing painful restructuring, plant closures or temporary lay- offs. "
HYPERLINK "http://www.ft.com/" www.ft.com, 11/24/200
If the governments can increase consumption or investment while holding the expected inflation co there would be

• A) a movement up along the short- run Phillips curve.
• B) a leftward shift of the AD curve.
• C) a movement down along the short- run Phillips curve
• D) a rightward shift of the long- run Phillips curve.

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