Suppose the Long-Run Phillips Curve Shifts to the Left

question 183

Multiple Choice

Suppose the long-run Phillips curve shifts to the left. For any given rate of money growth and inflation, how would unemployment and output change?

• A) Unemployment would be higher, and output would be lower.
• B) Unemployment would be higher, and output would be higher.
• C) Unemployment would be lower, and output would be lower.
• D) Unemployment would be lower, and output would be higher.

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