If wages and prices are completely flexible, which will occur?

1) the Phillips curve will be horizontal

2) the IS curve will be vertical

3) the Phillips curve will be vertical

4) the LM curve will be horizontal

A decrease in the natural rate of unemployment will result in which action pertaining to the Phillips curve?

1) shift the Philips curve to the left

2) result in a decrease in the inflation rate along the Phillips curve

3) shift the Phillips curve to the right

4) Result in an increase in the inflation rate along the Phillips curve