A Movement to the Left Along a Given Short-Run Phillips

question 54

Multiple Choice

A movement to the left along a given short-run Phillips curve could be caused by

• A)a reduction in the natural rate of unemployment or expansionary monetary policy.
• B)expansionary monetary policy, but not a reduction in the natural rate of unemployment.
• C)either a reduction in the natural rate of unemployment or a contractionary monetary policy.
• D)contractionary monetary policy, but not a reduction in the natural rate of unemployment.