(Figure: Understanding Phillips Curve Shifts) the Graph Shows Two

question 183

Multiple Choice

(Figure: Understanding Phillips Curve Shifts) The graph shows two Phillips curves.Suppose the economy originally faced curve PC₁.Which of the following would cause the curve to shift to PC₂?

• A) Workers in the economy are expecting lower inflation.
• B) The natural rate of unemployment rose.
• C) The nonaccelerating inflation rate of unemployment increased.
• D) The actual unemployment rate fell.

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Definitions:

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A rare inherited disorder that increases the levels of a substance called phenylalanine in the blood, leading to intellectual disability and other health issues unless managed by diet from an early age.

Phenylalanine

An essential amino acid found in the human body used by the body to produce proteins and other important molecules, which is obtained through the diet.

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A disability characterized by significant limitations in both intellectual functioning and in adaptive behavior, which covers many everyday social and practical skills.

Group Homes

Residential facilities providing therapeutic and supportive living situations for individuals who cannot live independently.