How Does an Increase in the Expected Rate of Inflation

question 82

Multiple Choice

How does an increase in the expected rate of inflation shift the Phillips curves?

• A) It shifts only the short-run Phillips curve to the right.
• B) It shifts only the short-run Phillips curve to the left.
• C) It shifts the long-run Phillips curve right and the short-run Phillips curve left.
• D) It shifts both the short-run and long-run Phillips curves to the left.

---

Definitions:

Potassium

Potassium is a chemical element with the symbol K, necessary for the functioning of all living cells and vital for heart, muscle, and nerve functions.

Sympathetic Nervous

Part of the autonomic nervous system that prepares the body for action, often referred to as the "fight or flight" response system.

Widens Airways

Refers to the process or action that increases the diameter of respiratory airways, improving air flow to and from the lungs.

Peripheral Nervous

Part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord.