Figure 17-2 -Refer to Figure 17-2.Suppose the Fed Used Expansionary Policy to Expansionary

question 234

Multiple Choice

Figure 17-2
-Refer to Figure 17-2.Suppose the Fed used expansionary policy to push short-run equilibrium to point B.If the short-run equilibrium remained at point B long enough

• A)the short-run Phillips curve would shift up.
• B)the short-run Phillips curve would shift down.
• C)the economy would move back to point A.
• D)the economy would stay at point B in the long run.

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Definitions:

Blue Currency

Informal term possibly referring to a foreign currency held in accounts outside the country of origin, often in a stronger, more stable currency.

Ambrosia

In classical mythology, the food of the gods, believed to convey immortality; in contemporary contexts, a type of fruit salad.

Bubble Gum

A kind of bubble gum made to be blown into a bubble outside the mouth.

Income

Earnings received by individuals or entities, typically through wages, investments, or other sources.