If the Natural Unemployment Rate Decreases, Then the Short-Run Phillips

question 60

Multiple Choice

If the natural unemployment rate decreases, then the short-run Phillips curve ________ and the long-run Phillips curve ________.

• A) does not shift; shifts leftward
• B) shifts leftward; shifts leftward
• C) shifts rightward; shifts leftward
• D) shifts rightward; shifts rightward
• E) shifts leftward; does not shift

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Definitions:

Pure Monopolist

A market scenario where a single company or entity exclusively controls the entire supply of a particular product or service, without any close substitutes or competition.

Socially Optimal

A condition or outcome that maximizes societal welfare, considering both efficiency and equity among members of society.

Marginal Cost

The spending required to create an additional unit of a good or service.

Marginal Revenue

The increase in revenue that results from selling one additional unit of a product or service, crucial for making decisions about production quantities and pricing.