Author Question: Over time, the percentage of total employment in services has ________ and in agriculture, ... (Read 107 times)

dollx · **on:** Jun 29, 2018

Over time, the percentage of total employment in services has ________ and in agriculture, employment has ________.

A) increased; increased
B) decreased; increased
C) stayed about the same; decreased
D) stayed about the same; increased
E) increased; decreased

Question 2

If the short-run Phillips curve shifts rightward, what happens to the tradeoff between inflation and unemployment? If the short-run Phillips curve shifts leftward, what happens to the tradeoff between inflation and unemployment?

What will be an ideal response?

amandalm · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

E

Answer to Question 2

A rightward shift of the short-run Phillips curve worsens the tradeoff between inflation and unemployment. With the rightward shift, a given level of inflation is now associated with a higher unemployment rate, or stated another way, a given unemployment rate is now associated with a higher inflation rate. A leftward shift of the short-run Phillips curve improves the tradeoff between inflation and unemployment. With the leftward shift, a given level of inflation is now associated with a lower unemployment rate, or stated another way, a given unemployment rate is now associated with a lower inflation rate.