Suppose an economy is operating with a recessionary gap. In this case, policymakers would seek to move the economy vertically up the Phillips curve toward an unemployment rate that is closer to the natural rate of unemployment. O vertically back down the Phillips curve toward an unemployment rate that is closer to the natural rate of unemployment. O vertically back down the Phillips curve toward an unemployment rate that is further from the natural rate of unemployment. O vertically up the Phillips curve toward an unemployment rate that is further from the natural rate of unemployment.

Suppose an economy is operating with a recessionary gap. In this case, policymakers would seek to move the economy vertically up the Phillips curve toward an unemployment rate that is closer to the natural rate of unemployment. O vertically back down the Phillips curve toward an unemployment rate that is closer to the natural rate of unemployment. O vertically back down the Phillips curve toward an unemployment rate that is further from the natural rate of unemployment. O vertically up the Phillips curve toward an unemployment rate that is further from the natural rate of unemployment.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Easy beginner econ question. Thank you!

Suppose an economy is operating with a recessionary gap. In this case, policymakers would seek
to move the economy
vertically up the Phillips curve toward an unemployment rate that is closer to the natural rate of
unemployment.
vertically back down the Phillips curve toward an unemployment rate that is closer to the natural rate of
unemployment.
vertically back down the Phillips curve toward an unemployment rate that is further from the natural rate
of unemployment.
vertically up the Phillips curve toward an unemployment rate that is further from the natural rate of
unemployment.

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