On the Modern Phillips Curve,the Initial Impact of an Increase

question 80

Multiple Choice

On the modern Phillips curve,the initial impact of an increase in the world price of steel is shown by ________.

• A)an upward movement along the Phillips curve to a higher inflation rate
• B)an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate
• C)a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate
• D)a downward movement along the Phillips curve to higher unemployment rates
• E)none of the above

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