The Shift to the Right of the Phillips Curve in the 1970s

question 60

Multiple Choice

The shift to the right of the Phillips curve in the 1970s and its leftward shift in the middle to late 1990s was in part caused by

• A) the impact of government-imposed incomes policies.
• B) the fact that the money supply remained constant despite price level changes over these years.
• C) shifts in the aggregate supply curve.
• D) changes in the way we measure inflation and unemployment rates.
• E) variations in the international value of the dollar.

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Definitions:

Modular Organization

A flexible organizational structure where components or modules can be easily assembled, reassembled, added, or removed to adapt to changing demands.

Market Mechanisms

The use of market principles and forces to allocate resources and determine prices within an economy.

Formal Lines

Predetermined channels of communication and authority within an organization, established through its structure and policies to ensure effective coordination and control.

Virtual Organization

A network of continually evolving independent organizations that share skills, costs, and access to one another’s markets.