Given a Phillips Curve with Stable and Predictable Inflation and Unemployment

question 142

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:

Differential Association

A theory that suggests individuals learn criminal behavior from their interactions and communications with others.

Ethical Behavior

Conduct based on recognized principles of right and wrong, influencing how individuals and organizations act in various situations.

Role-Sets

Concept in sociology referring to the array of roles and behaviors expected of an individual in a particular social position.

The Grapevine

An informal, unofficial, and personal communication network found within or across organizations, which is faster and more versatile than formal channels.