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:

Color-blind

A visual impairment in which an individual has difficulty distinguishing between certain colors, typically red and green or blue and yellow.

Protanopia

A type of color blindness where individuals have difficulty distinguishing between red and green colors.

Deuteranopia

A type of red-green color blindness caused by the absence of or defect in the green cone cells in the eye.

Blue Cones

Photoreceptor cells in the retina of the eye responsible for the perception of blue light wavelengths.