Moving Along a Short- Run Phillips Curve

question 273

Multiple Choice

Moving along a short- run Phillips curve,

• A) the price level is constant.
• B) the expected inflation rate is constant.
• C) unemployment is constant.
• D) the inflation rate is constant.

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Definitions:

Lack-of-participation Error

A mistake or bias that occurs due to the absence or minimal involvement of certain groups or individuals.

Representativeness Bias

A cognitive bias where individuals incorrectly estimate the likelihood of an event by comparing it to an existing prototype in their minds.

Availability Bias

The tendency to overestimate the likelihood of events based on their availability in memory, often influenced by recent occurrences.

Confirmation Error

A cognitive bias that involves giving more attention and weight to information that confirms one's preexisting beliefs or hypotheses, while ignoring or undervaluing information that contradicts them.