In the Long Run, What Are the Effects of a Decrease

question 20

Multiple Choice

In the long run, what are the effects of a decrease in the rate of growth of the money supply on the Phillips curves?

• A)It shifts both the long-run and the short-run Phillips curves right.
• B)It shifts the long-run Phillips curve left and the short-run Phillips curve right.
• C)It shifts the long-run Phillips curve right and the short-run Phillips curve left.
• D)It leaves the long-run Phillips curve unchanged and shifts the short-run Phillips curve left.

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Definitions:

Process Layout

A way to arrange a manufacturing business by placing all comparable equipment together in the same area.

Manufacturing Business

A company involved in the transformation of raw materials into finished products through the use of machinery and labor.

Free-Flow Layout

A store or workplace arrangement where fixtures and merchandise are grouped in an informal, non-linear manner to encourage exploration by customers.

Hat Shop

A retail store specializing in selling hats and headwear.