Aggregate c demandischangingbutaggregatesupplyisnot

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Unformatted text preview: ff: 3 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Analytic AACSB: Analytic Skills 25) If aggregate demand increases and expectations regarding inflation remain constant, A) the economy B) moves along the short-run Phillips curve. the short-run C) Phillips curve shifts to the right. the short-run D) Phillips curve shifts to the left. the long-run Phillips curve shifts to the right. Answer: A Diff: 2 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Analytic AACSB: Analytic Skills 26) If inflation expectations change as a result of an expansionary fiscal policy, this causes A) the long-run B) Phillips curve to shift. the short-run C) Phillips curve to shift. the short-run D) Phillips curve to remain constant. a movement along the short-run Phillips curve. Answer: B Diff: 2 Topic: The Short-Run Relationship Between the Unemployment Rate and Inflation Skill: Analytic AACSB: Analytic Skills 27) If aggregate supply increases and aggregate...
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