In response to an increase in technology, we would expect
a. both the short run and long run Phillips curve to shift to the right.
b. both the short run and long run Phillips curve to shift to the left.
c. the long run Phillips curve remains unchanged while the short run Phillips curve shifts to the right.
d. the short run Phillips curve remains unchanged while the long run Phillips curve shifts to the right.
e. none of the above.
Question 2
In Brinley Thomas' (1954) theory of the Atlantic Economy,
(a) cotton exports to Europe drove the growth of the U.S. economy.
(b) people and capital moved to the U.S. when U.S. economic growth was strong.
(c) the peaks of the U.S. business cycle were closely aligned with that of European peaks.
(d) all of the above are true.
