What Impact Does Monetary Policy Have on the Long-Run Phillips

question 80

Multiple Choice

What impact does monetary policy have on the long-run Phillips curve?

• A)Monetary policy can only shift the long-run Phillips curve to the left.
• B)Monetary policy shifts the long-run Phillips curve to the right or left,depending on whether monetary policy is expansionary or contractionary.
• C)Monetary policy can only shift the long-run Phillips curve to the right.
• D)Monetary policy has no impact on the long-run Phillips curve.

---

Definitions:

Economies Of Scope

Cost advantages that result from a firm's ability to produce multiple products more efficiently together than separately.

Seasonal Demand

Fluctuations in the demand for certain products or services that occur at specific times of the year.

Diseconomies Of Scope

Exist when the cost of producing two products jointly is more than the cost of producing those two products separately.

Economies Of Scope

Cost advantages that a business achieves by producing a wider variety of products, rather than specializing in a single product or service.