(Figure: Understanding Phillips Curves Shifts 2) What Would Cause an Outward

question 6

Multiple Choice

(Figure: Understanding Phillips Curves Shifts 2) What would cause an outward shift from Phillips curve PC₁ to Phillips curve PC₀?

• A) a decrease in the expected inflation rate
• B) an increase in the expected inflation rate
• C) a decrease in the natural rate of unemployment
• D) an increase in the natural rate of unemployment

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Definitions:

Sudden Loss

A traumatic, unexpected event resulting in the loss of something or someone significant, often leading to profound emotional impact and grief.

Hormone Shift

A change in the balance or levels of hormones in the body, which can affect physical and mental health, mood, and behavior.

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Specific locations on a chromosome where particular genes are found.

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A severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior, often manifested through hallucinations and delusions.