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Unformatted text preview: ve C) an expansionary fiscal policy followed by a leftward shift in the AS curve D) an expansionary fiscal policy followed by a rightward shift in the AS curve Answer: B Diff: 3 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Analytic AACSB: Analytic Skills 22) Refer to 14.7. Suppose the economy is at Point A, a sudden increase in the price of oil without any change in the Figure aggregate demand shifts the short-run Phillips curve (SRPC) from A) SRPC1 to B) SRPC2. SRPC1 to C) SRPC3. SRPC2 to D) SRPC1. SRPC3 to SRPC1. Answer: A Diff: 3 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Analytic AACSB: Analytic Skills 23) Refer to 14.7. If the economy is at Point B, the cost of raw material decreased dramatically, and the aggregate Figure demand did not change, the economy could move to Point ________. A) A B) E C) C D) D Answer: B Diff: 3 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Analytic AACSB: Analytic Skills 24) Refer to 14.7. Suppose the economy is at Point A, and the cost of inputs is fixed. An increase in government Figure spending could move the economy to Point ________. A) E B) B C) C D) D Answer: C Di...
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This note was uploaded on 06/02/2013 for the course ECON 130 taught by Professor Meshew during the Fall '13 term at Victoria Wellington.

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