If the Fed Wants to Move the Economy Down and to the Right

question 24

Multiple Choice

If the Fed wants to move the economy down and to the right along the Phillips curve,what must it do?

• A) Increase the rate at which the aggregate supply curve shifts upward
• B) Decrease the rate at which the aggregate demand curve shifts rightward
• C) Increase the rate at which the aggregate demand curve shifts rightward
• D) Increase the rate at which the aggregate demand curve shifts leftward
• E) Decrease the rate at which the aggregate supply curve shifts upward.

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Definitions:

Industrial Unions

Labor unions that organize workers from various trades and sectors within the same industry to negotiate for better wages, working conditions, and other employment issues.

Final Offer Arbitration

Method of resolving collective bargaining deadlocks whereby the arbitrator has no power to compromise but must select one or another of the final offers submitted by the two parties.

Binding Conciliation

A method of dispute resolution where an impartial third party makes decisions that are legally enforceable upon the parties involved.

Employer's Bargaining Strategy

A strategy used by employers during negotiations to secure favorable terms that align with their organizational goals and budget.