To move to a point on the Phillips curve where inflation is lower, unemployment must rise...

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Economics

To move to a point on the Phillips curve where inflation islower, unemployment must rise and the unemployment rise could havebeen caused by the Fed decreasing the money supply.
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True
False
According to the natural rate hypothesis (Friedman and Phelps),policymakers face a long-run Philips curve that is vertical becausethe natural unemployment rate is independent of the inflationrate.
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True
False
The federal government could increase spending and decreasetaxes to move to a point on the short-run Phillips curve whereinflation is lower, but unemployment would rise.
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True
False
The short-run Phillips curve shows the combinations ofunemployment and inflation that arise in the short run as short-runaggregate supply shifts the economy along the aggregate demandcurve.
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True
False
In the mid and late 1990s, aggregate supply shifted to the rightand the Phillips curve shifted to the left as inflationexpectations changed to a lower rate.
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True
False

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To move to a point on the Phillips curve where inflation is lower unemployment must rise and the unemployment rise could have been caused by the Fed decreasing the money supply True Explanation There is an See Answer

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