Chapter 10. The AS-AD Model and the Phillips Curve

1. An increase in the marginal propensity to consume will cause the growth rate of nominal GDP to _____ and the _____ curve(s) will shift.

2. An increase in the growth rate of nominal GDP will cause the inflation rate to ____ and the unemployment rate to ____.

3. A negative supply shock will cause output to ___ and the inflation rate to _____.

4. An increase in the growth rate of nominal GDP will shift the