If Inflation Expectations Change as a Result of an Expansionary

question 16

Multiple Choice

If inflation expectations change as a result of an expansionary fiscal policy, this causes

• A) the long-run Phillips curve to shift.
• B) the short-run Phillips curve to shift.
• C) the short-run Phillips curve to remain constant.
• D) a movement along the short-run Phillips curve.

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Definitions:

Dexterity

Dexterity refers to the skill and grace in physical movement, especially the hands, and the ability to perform tasks requiring a high level of manual coordination.

Standard Deviation

A tool for measuring how far apart or closely grouped a set of numerical entries are.

Model Appropriate

The suitability of a statistical model in accurately representing the data and addressing the research question.

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