Ask AI on The Internet
Question: The United States decreases taxes, but only on a limited amount of people. How will this affect either the: Long Run Phillips Curve, or Short Run Phillips Curve. Question 17 options: Long Run Phillips Curve Shifts Right. Long Run Phillips Curve Shifts Left. Movement along the Short Run Phillips Curve up and left. Movement along the Short Run Phillips Curve down and right. Short Run Phillips Curve Shifts Right Short Run Phillips Curve Shifts Left
The Phillips Curve depicts the relationship between inflation and unemployment. A cut in taxes for a limited number of people would put more money into their hands, which could lead to an increase in demand for goods and services. This could potentially lead to a decrease in unemployment and an increase in inflation in the short term. Therefore, the appropriate answer is: Movement along the Short Run Phillips Curve down and right.
A new large language model has been made available since this question was asked.
To generate an updated answer from the new model, click the button below.
Think your answer is better than the AI's? Post it below.
If you want your question answered by an AI, click here.
Post your own comment: