Author Question: The inflation associated with the oil embargoes of the 1970s resulted in: a. reduced unemployment ... (Read 29 times)

bobthebuilder · **on:** Jun 30, 2018

The inflation associated with the oil embargoes of the 1970s resulted in:
a. reduced unemployment because aggregate demand increased.
b. reduced unemployment because aggregate demand fell.
c. increased unemployment because aggregate demand increased.
d. increased unemployment because aggregate demand fell.
e. increased unemployment because aggregate supply fell.

Question 2

The inflation associated with the oil embargoes of the 1970s illustrated the _____ of the downward-sloping Phillips curve in the long run, as unemployment _____ during this period.
a. validity; fell
b. validity; rose
c. fallacy; rose
d. fallacy; fell
e. fallacy; did not change