An Increase in the Expected Inflation Rate Shifts

question 282

Multiple Choice

An increase in the expected inflation rate shifts

• A) both the short-run and the long-run Phillips curves upward.
• B) the long-run but not the short-run Phillips curve upward.
• C) neither the short-run nor the long-run Phillips curve.
• D) the short-run but not the long-run Phillips curve upward.

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Definitions:

CIF

Cost, Insurance, and Freight, a term used in international trade that indicates the seller is responsible for covering these expenses until the goods reach the purchaser's specified port of destination.

Cost

The value, usually in monetary terms, required to produce, acquire, or maintain a good or service.

Insurance

A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.

Breach of Warranty

A violation of the terms of an express or implied warranty, where the promised standard or quality of a product or service is not met.