Which of the Following Leads to an Rightward Shift in the Short-Run

question 20

Multiple Choice

Which of the following leads to an rightward shift in the short-run Phillips curve?
I. a reduction in inflationary expectations.
II. an increase in the natural rate of unemployment.
III. an increase in the velocity of circulation

• A) I only
• B) II only
• C) I and II
• D) I and III

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Definitions:

Comparative Advantage

The ability of an individual or country to produce a good or service at a lower opportunity cost than others, underpinning international trade.

Comparative Disadvantage

A situation where a country or entity is less efficient at producing goods or services compared to another country or entity.

Absolute Advantage

The capacity of a person, corporation, or nation to manufacture a product or provide a service at a lower per-unit expense than any other participant in the market.

Comparative Advantage

The capability of an individual or organization to create a product or provide a service with a smaller opportunity cost than another.