What Is the Long-Run Effect of a Decrease in Expected

question 41

Multiple Choice

What is the long-run effect of a decrease in expected inflation predicted by the Phillips curve model?

• A) lower inflation, but no change in unemployment
• B) lower inflation and lower output
• C) higher inflation and higher unemployment
• D) no change in inflation, but higher unemployment

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Definitions:

Mass Storage Devices

Devices designed to store large amounts of data for long-term retention; examples include hard drives, solid-state drives, and tape libraries.

Magnetic Disks

Data storage devices that use magnetic storage to record and retrieve digital information using one or more rotating disks.

Optical Storage Devices

A form of secondary storage in which a laser reads the surface of a reflective plastic platter.

Primary Storage

The main area in a computer where data is stored for quick access by the CPU, often referred to as RAM (Random Access Memory).