Page 1 of 11 Test Bank Macroeconomics: Theory and Policy Chapter 17: The Phillips Curve B. Modjtahedi Question 1 What is the implication of the shape of the short-run Phillips Curve for economic policy? A. It implies that in the short run you can either reduce inflation rate or unemployment rate, but not both. B. It implies that an expansionary monetary policy can increase both the inflation rate and unemployment rate. C. It implies that in the short run you can reduce the inflation rate but not the unemployment rate. D. It implies that in the short run you can reduce the unemployment rate but not the inflation rate. E. None of the above. Question 2 As far as reducing unemployment and inflation rates is concerned, policymakers are confronted with a menu of choices because: Question 3 Who said, “Inflation always and everywhere is a monetary phenomenon”?Question 4 Which year did the U.S. Phillips Curve began to shift?
has intentionally blurred sections.
Sign up to view the full version.