Author Question: An increase in expected inflation will A) decrease the natural rate of unemployment. B) increase ... (Read 191 times)

kodithompson · **on:** Jun 29, 2018

An increase in expected inflation will

A) decrease the natural rate of unemployment. B) increase real wages.
C) shift the long-run Phillips curve to the right. D) None of the above is correct.

Question 2

Refer to Figure 15-8. In the figure above, if the economy is at point A, the appropriate monetary policy by the Federal Reserve would be to

A) lower interest rates. B) raise income taxes.
C) raise interest rates. D) lower income taxes.