According to the short-run Phillips curve, if the central bank increases the money supply, then Answer inflation and unemployment will both fall. inflation and unemployment will both rise. inflation will fall and unemployment will rise. inflation will rise and unemployment will fall.
According to the short-run Phillips curve, if the central bank increases the money supply, then Answer inflation and unemployment will both fall. inflation and unemployment will both rise. inflation will fall and unemployment will rise. inflation will rise and unemployment will fall.
Chapter17: The Philips Curve And Expetactions Theory
Section: Chapter Questions
Problem 5SQ
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Question
According to the short-run
Answer
inflation and
inflation and unemployment will both rise.
inflation will fall and unemployment will rise.
inflation will rise and unemployment will fall.
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