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TiliK225 [7]
1 year ago
10

given a fixed phillips curve with stable and predictable inflation and unemployment rate tradeoffs, it appears that: given a fix

ed phillips curve with stable and predictable inflation and unemployment rate tradeoffs, it appears that: a tight money policy can shift the curve to the right. manipulating aggregate demand through fiscal and monetary policies has the effect of shifting the curve. an expansionary fiscal policy can shift the curve to the right. manipulating aggregate demand through fiscal and monetary policies has the effect of causing a movement along the curve.
History
1 answer:
arlik [135]1 year ago
4 0

Given a fixed Phillips curve with stable and predictable inflation and unemployment rate tradeoffs, it appears that manipulating aggregate demand through fiscal and monetary policies has the effect of causing a movement along the curve.

The Phillips curve refers to an economic model, which is named after its developer William Phillips. It suggests a correlation between unemployment and inflation. It postulates that inflation and unemployment possess a stable and inverse relationship, claiming that economic growth causes inflation and leads to more job opportunities and less unemployment. Aggregate demand changes cause movements along the Phillips curve. Hence, manipulating aggregate demand through fiscal and monetary policies has the effect of causing a movement along the curve.

Learn more about Phillips curve:

brainly.com/question/28163276

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