When Inflation Is Not a Surprise

question 153

Multiple Choice

When inflation is not a surprise,

• A) the Phillips curve is downward sloping.
• B) activist monetary policy has a real effect on the economy.
• C) the economy is not at full-employment output.
• D) it does not affect the unemployment rate.
• E) the economy is expanding.

---

Definitions:

Notice of Rejection

A formal notification indicating that an offer or proposal has been declined.

Revoke Acceptance

In contract law, the right of a buyer to reject goods after initial acceptance if they substantially fail to conform to the contract or because of a latent defect.

Nonconformity

The failure of a product or service to meet specified standards or expectations, typically resulting in a breach of warranty.

Cure the Defect

The process of correcting or fixing a flaw or error in a legal document or procedure.