Which of the following is not correct?
A)In the short run,policymakers face a tradeoff between inflation and unemployment.
B)Events that shift the long-run Phillips curve right shift the long-run aggregate supply curve left.
C)Unemployment can be changed only by the use of government policy.
D)The decrease in output associated with reducing inflation is less if the policy change is announced ahead of time and is credible.

Question

Quizplus · Accepted Answer

While government policy can have an impact on unemployment levels, there are other factors such as technological advancements and shifts in the economy that can also affect employment rates. Therefore, it is incorrect to say that unemployment can only be changed by the use of government policy.

Which of the Following Is Not Correct