Given a Phillips Curve with Stable and Predictable Inflation and Unemployment

question 100

Multiple Choice

Given a Phillips Curve with stable and predictable inflation and unemployment rate trade-offs, it appears that

• A)an expansionary fiscal policy can shift the curve to the left.
• B)a tight money policy can shift the curve to the right.
• C)manipulating aggregate demand through fiscal and monetary policies has the effect of causing a movement along the curve.
• D)manipulating aggregate demand through fiscal and monetary policies has the effect of shifting the curve.

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Definitions:

Ledger

A book or other collection of financial accounts of a particular type, typically used in accounting to record transactions.

Charges

Fees or prices asked for goods or services.

Payments

The act of providing money or its equivalent in exchange for goods, services, or to settle debts.

Balance Due

The amount of money owed on an invoice or bill that remains unpaid and is required to settle the account.