Economists Who Have Studied the Phillips Curve Have Concluded That

question 25

Multiple Choice

Economists who have studied the Phillips curve have concluded that it can shift due to all of the following EXCEPT

• A) demand shocks.
• B) supply shocks.
• C) changes in household expectations of inflation.
• D) changes in firms' expectations of inflation.

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Definitions:

Income

The extraction of financial value, repetitively over time, from working engagements or investment pursuits.

Income Elasticity

A measure of how much the demand for a good or service changes with a change in the consumer's income.

Per Capita

A statistical measure that represents the average per person of a particular indicator, such as income or GDP.

Disposable Income

The sum of funds households can allocate for expenditure and saving once income taxes are deducted.