On the Modern Phillips Curve,the Initial Impact of Government Policies

question 84

Multiple Choice

On the modern Phillips curve,the initial impact of government policies to stimulate the economy is shown by ________.

• A)an upward movement along the Phillips curve to a higher inflation rate
• B)an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate
• C)a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate
• D)a downward movement along the Phillips curve to higher unemployment rates
• E)none of the above

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Definitions:

Endogenous Opiates

Naturally occurring chemicals in the body that reduce pain, enhance pleasure, and play a role in the stress response, similar to opioids.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brain and is encased within the vertebral column.

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems that plays a crucial role in muscle movement and cognitive functions.

Adrenaline

Also known as epinephrine, a hormone and neurotransmitter that increases heart rate, contracts blood vessels, dilates air passages, and participates in the fight-or-flight response of the sympathetic nervous system.