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Author Question: If inflationary expectations decrease, the Phillips curve will (Read 83 times)

roselinechinyere27m

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Question 1

If the 
AS curve shifts from year to year, but the 
AD curve does not, then the Phillips curve would show


◦ a positive relationship between the inflation and unemployment rates.
◦ a negative relationship between the inflation and unemployment rates.
◦ no particular relationship between the inflation and unemployment rates.
◦ a constant trade-off between the inflation and unemployment rates.

Question 2

If inflationary expectations decrease, the Phillips curve will


◦ shift to the right.
◦ shift to the left.
◦ become vertical.
◦ become upward sloping.


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Marked as best answer by roselinechinyere27m on Apr 19, 2019

peilian

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peilian

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