A Rightward Shift of the Phillips Curve Suggests That

question 259

Multiple Choice

A rightward shift of the Phillips Curve suggests that

• A) a higher rate of unemployment is associated with each level of inflation rate.
• B) a lower rate of inflation is associated with each level of unemployment rate.
• C) the aggregate supply curve has shifted to the right.
• D) the aggregate demand curve has shifted to the left.

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Definitions:

Manufacturers

Companies or individuals that produce finished goods from raw materials on a large scale.