Which of the Following Will Occur Because of a Rightward

question 13

Multiple Choice

Which of the following will occur because of a rightward shift of the Phillips curve?

• A)A rightward shift of aggregate demand.
• B)A decrease in both unemployment and inflation.
• C)A trade-off between unemployment and inflation.
• D)An outcome known as stagflation.

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Definitions:

Personal Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Monetary Policy

Actions taken by the Board of Governors of the Federal Reserve System to influence the money supply or interest rates.

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, bank regulation, and the stability of the financial system.