If the natural unemployment rate decreases, then the short-run ...

[karateprodigy]

If the natural unemployment rate decreases, then the short-run Phillips curve ________ and the long-run Phillips curve ________.
 
  A) does not shift; shifts leftward
  B) shifts leftward; shifts leftward
  C) shifts rightward; shifts rightward
  D) shifts leftward; does not shift
  E) shifts rightward; shifts leftward

Question 2

Refer to Figure 7.1. If Angus chooses to earn the most money and Dudley calls the police, Dudley will receive a daily payoff of
 
  A) 350.
  B) 550.
  C) 700.
  D) none of the above

[ryrychapman11]

Answer to Question 1

B

Answer to Question 2

A