Suppose a Policy Increases the Natural Rate of Unemployment

question 165

Multiple Choice

Suppose a policy increases the natural rate of unemployment. What is the effect of such a policy change?

• A) an upward movement along the long-run Phillips curve
• B) a downward movement along the long-run Phillips curve
• C) a rightward shift of the long-run Phillips curve
• D) a leftward shift of the long-run Phillips curve

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Definitions:

Bank Balance

The amount of money held in a bank account at a given moment.

Cash Account

An account that records all transactions involving cash, including receipts and payments.

Debit Balances

Balances in accounts that represent amounts spent or assets, as opposed to credits, which signify income or liabilities.

Assets

Economic resources controlled or owned by a business or individual, which have future economic value.