A Rightward Shift of the Phillips Curve Would Suggest That

question 86

Multiple Choice

A rightward shift of The Phillips Curve would suggest that:

• A)the productivity of labour increased.
• B)each higher rate of inflation is now associated with a higher rate of unemployment than previously.
• C)cost-push inflation decreased.
• D)a lower rate of inflation is now associated with each rate of unemployment than previously.

---

Definitions:

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to a negative balance of trade.

Foreign Assets

Assets such as stocks, bonds, real estate, or businesses that are located in countries outside the investor's home country.

Foreign Price Level

A measure of the average prices of goods and services in a country relative to those in other countries, affecting exchange rates and purchasing power.

Real Exchange Rate

The rate at which a person can exchange the currency of one country for the currency of another and obtain the same quantity of goods.