After the 1960s, the short-run Phillips curve based on U.S. economic data:
a. began shifting inward.
b. began shifting outward.
c. did not shift at all.
d. became virtually horizontal.
e. became virtually vertical.
Question 2
Current thinking on the Phillips curve suggests that it would be best for policy makers to:
a. focus on controlling unemployment.
b. stimulate permanent shifts in aggregate supply.
c. focus on controlling inflation.
d. stimulate permanent shifts in aggregate demand.
e. develop a two-pronged policy to control both unemployment and inflation.
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