-An Economy?s Natural Unemployment Rate Is 4 Percent

question 341

Multiple Choice

$$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Inflation rate } \\\text { (percent per year) }\end{array} & \begin{array} { l } \text { Unemployment rate } \\\text { (percent) }\end{array} \\\hline 8 & 3 \\\hline 6 & 4 \\\hline 4 & 5 \\\hline 2 & 6 \\\hline\end{array}$$
-An economy?s natural unemployment rate is 4 percent. The table above gives some points on the economy?s short-run Phillips curve. If the expected inflation rate becomes 8 percent per year, then the ___________

• A) short-run Phillips curve shifts upward
• B) short-run Phillips curve shifts downward
• C) long-run Phillips curve shifts leftward
• D) long-run Phillips curve shifts rightward

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Definitions:

Initiating Behaviors

Actions taken to begin or set into motion any course of action or project.

Providing Feedback

The process of offering constructive criticism, support, or information to individuals or groups to facilitate improvement or growth.

Defensiveness And Resistance

Psychological reactions that serve to protect an individual's ego or self-concept, often manifesting as opposition to change or criticism.

Lack Of Confidence

A state of self-doubt and uncertainty about one's abilities or self-worth, which can hinder performance and decision-making.