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:

Social Norms

Informal understandings that govern the behaviors of members of a society, dictating what is considered acceptable.

Social Control Theory

A theory in sociology that suggests mechanisms, such as societal norms and regulations, are used to maintain social order by discouraging deviant and criminal behavior.

Deviance

Behaviors or actions that violate societal norms and expectations, often eliciting negative responses from others.

Social Control

Mechanisms, strategies, and institutions used by societies to regulate individual behavior, ensuring conformity to laws and social norms.