If the Natural Unemployment Rate Increases, the Long-Run Phillips Curve

question 89

Multiple Choice

If the natural unemployment rate increases, the long-run Phillips curve ________, the short-run Phillips curve ________, and the expected inflation rate ________.

• A)does not shift; does not shift; does not change
• B)shifts rightward; shifts rightward; does not change
• C)does not shift; shifts rightward; rises
• D)shifts rightward; curve does not shift; falls
• E)shifts rightward; shifts rightward; falls

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Definitions:

Tangible Assets

Assets that have a physical form such as machinery, buildings, and land.

Intangible Assets

Assets that have special rights but not physical substance

Physical Substance

A characteristic of an asset that consists of material existence; tangible assets that can be seen, touched, or quantified.

Depletion

Systematic and rational allocation of the cost of a natural resource over the period of its exploitation