Question
In response to a financialcrisis, central banks increased the quantity of money and cut interest rates and governments embarked on programs of fiscal stimulus. At
In response to a financialcrisis, central banks increased the quantity of money and cut interest rates and governments embarked on programs of fiscal stimulus. At the sametime, massive changes in the global economy brought the need for massive structural change.
If the increase in the quantity ofmoney, the interest ratecuts, and fiscal stimulus increase the expected inflationrate, then______.
If the global structural changes lower the natural unemploymentrate, then______.
A.
theshort-run Phillips curve and thelong-run Phillips curve shiftrightward;
theshort-run Phillips curve shifts upward
B.
thelong-run Phillips curve shiftsrightward;
theshort-run Phillips curve and thelong-run Phillips curve shift leftward
C.
theshort-run Phillips curve shiftsupward;
theshort-run Phillips curve and thelong-run Phillips curve shift rightward
D.
theshort-run Phillips curve shiftsupward;
theshort-run Phillips curve and thelong-run Phillips curve shift leftward
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