In the Long Run, How Does an Increase in the Rate

question 178

Multiple Choice

In the long run, how does an increase in the rate of growth of the money supply shift the Phillips curves?

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

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Definitions:

Lowest Terms

A fraction reduced to the lowest terms where the numerator and denominator are the smallest possible numbers that retain the original value.

Fractions

Numerical quantities that represent a part of a whole, commonly expressed with a numerator and a denominator.

Lowest Terms

The most basic version of a fraction, in which both the top and bottom numbers have been minimized to the lowest possible figures.

Pasta Sauce

A flavored liquid or semi-liquid mixture served with pasta, typically made from ingredients such as tomatoes, herbs, and spices.