The question based on the following diagram:

Which of the following factors will result in a rightward shift of the Phillips curve as illustrated?

Government spending forms part of total autonomous spending A.

Which of the following statements about the circular flow of production, income, and spending is/are true?

(1) Firms are sellers in the factor market and buyers in the goods markets.

(2) In the real sector, both factors of production and goods and services are traded.

(3) In the circular flow of economic activity, the financial sector operates independently of the real sector.

(4) Households are both sellers and buyers in the market for goods and services.