The short-run Phillips curve shows that: a. the economy can have ...

[magmichele12]

The short-run Phillips curve shows that:
 a. the economy can have low inflation and low unemployment simultaneously.
 b. the economy can have high per-capita income and high interest rate simultaneously.
  c. a reduction in per-capita income comes at the expense of lower inflation.
 d. a reduction in unemployment comes at the expense of higher inflation.
 e. a reduction in inflation comes at the expense of lower exchange rate.

Question 2

Suppose the economy had been operating along a given short-run Phillips curve for several years and then experienced a year of stagflation. The year of stagflation would:
 a. be represented as a move upward along the short-run Phillips curve.
  b. be represented as a move downward along the short-run Phillips curve.
  c. be represented as a point above the short-run Phillips curve.
 d. be represented as a point below the short-run Phillips curve.
 e. correspond to the origin.

[mcomstock09]

Answer to Question 1

d

Answer to Question 2

c

[magmichele12]

TYSM

[nyrave]

Thanks for the timely response, appreciate it