A Decrease in the Expected Inflation Rate Leads To__________in the Long

question 44

Multiple Choice

A decrease in the expected inflation rate leads to__________in the long -run Phillips curve and__________ in the short-run Phillips curve.

• A) a leftward shift; an upward shift
• B) no shift; a downward shift
• C) no shift; no shift
• D) an upward shift; no shift

---

Definitions:

Cerebrum

The largest part of the human brain, responsible for voluntary movements, sensory perception, learning, memory, and other higher cognitive functions.

Peduncles

Stalk-like structures in plants or the brain, serving as connectors or support, such as the cerebellar peduncles that connect the cerebellum to the brainstem.

Cerebellum

A part of the brain located at the base of the skull, responsible for coordinating voluntary movements, balance, and posture.

Brainstem

The structure in the brain that connects the spinal cord to the forebrain and cerebrum, controlling vital functions such as breathing and heart rate.