If the Phillips curve is usually correct, which of the following would be unusual? O a. an increase in output and a decrease in unemployment O b. a decrease in inflation and an increase in unemployment O c. an increase in money supply growth and an increase in unemployment Inflation Rate 3 2 1 Unemployment Rate Exhibit 1 5. O d. an increase in money supply growth and an increase in inflation O e. an increase in inflation and an increase in outputMany economists during the 19603, such as Samuelson and Solow believed that the Phillips curve 0 a. All of the above are correct. 0 b. implied that low unemployment was associated with low ination. 0 c. offered policymakers a menu of possible economic outcomes from which to choose. 0 d. A and B, only 0 e. indicated that the aggregate supply and aggregate demand model was incorrect. Suppose the Phillips curve is correct. If the government increases government expenditures, then aggregate demand O a. decreases and unemployment rises in the short run. O b. increases and unemployment falls in the short run. O c. increases and inflation falls in the short run. O d. decreases and both inflation and unemployment rise in the short run O e. decreases and both inflation and unemployment fall in the short runThe Federal Funds rate is the interest rate O a. interest rate on 3 month Treasury bills. O b. banks charge their best commercial or household customers on short-term loans. O c. the Fed charges depository institutions for short-term loans. O d. banks charge each other for short-term loans. O e. the Fed pays on deposits. Question 10 Not yet answered Marked out of 1.00 Flag question The overall price level in the U.S. is measured by the O a. rate of deflation. O b. CPI or the GDP deflator. O c. rate of inflation. O d. price of some particular commodity or service. O e. Either A or B