Which of the following is false? a. The short-run effect of unexpected disinflation is rising unemployment.

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Which of the following is false?

a. The short-run effect of unexpected disinflation is rising unemployment.

b. The short-run Phillips curve assumes a constant reservation wage and a constant expected rate of inflation.

c. The tradeoff between inflation and unemployment comes from expected inflation.

d. Inventory fluctuations may cause a movement along the Phillips curve.

e. If wages were flexible, unexpected changes in aggregate demand might be reflected more in wage adjustments than in employment adjustments.

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Fundamentals Of Economics

ISBN: 9780618992676

4th Edition

Authors: William Boyes , Michael Melvin

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