Asked by
Lyndsay Wilson
on Dec 16, 2024Verified
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.
Phillips Curve
An economic theory suggesting an inverse relationship between the rate of inflation and the rate of unemployment within an economy.
Policy Makers
Individuals or bodies responsible for formulating and implementing public policies, laws, and regulations, often within governmental or legislative institutions.
Aggregate Supply
The total supply of goods and services that are available to consumers in an economy at a given price level in a given period.
- Gain insight into the principles underlying the short-run Phillips curve and its impact on both inflation and unemployment.
Verified Answer
SV
Learning Objectives
- Gain insight into the principles underlying the short-run Phillips curve and its impact on both inflation and unemployment.