According to the Phillips Curve, in the Short Run, If

question 26

Multiple Choice

According to the Phillips curve, in the short run, if policy makers choose an expansionary policy to lower the rate of unemployment,

• A)the economy will experience an increase in inflation.
• B)the economy will experience a decrease in inflation.
• C)inflation will be unaffected if price expectations are unchanging.
• D)None of these answers.

---

Definitions:

November

November, which is the month number eleven in the Gregorian calendar.

Raw Materials Account

An accounting record that tracks the cost of raw materials purchased by a company intended for use in production.

November

The eleventh month of the year in the Gregorian calendar, often associated with fall in the northern hemisphere and spring in the southern hemisphere.

Raw Materials

The basic, unprocessed inputs required for the production process in manufacturing goods.