What Would Shift the Long-Run Phillips Curve to the Right

question 158

Multiple Choice

What would shift the long-run Phillips curve to the right?

• A) an increase in the money supply
• B) an increase in the tax rate
• C) increases in unemployment compensation
• D) a decrease in the unemployment rate

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Definitions:

Utility From Milk

The satisfaction or benefit a consumer receives from consuming milk, assessing its nutritional value and taste preferences.

Optimal Consumption Rule

A guideline suggesting that to maximize utility, consumers should allocate their budget in a way that the last dollar spent on each good or service yields the same level of marginal utility.

Marginal Utility

The extra gratification or advantage a person receives by consuming an additional unit of a specific good or service.

Marginal Utilities

The extra pleasure or benefit a consumer gets from purchasing and using an additional unit of a product or service.