Figure 28-2 -Refer to Figure 28-2. Suppose the Fed Used Contractionary Policy

question 160

Multiple Choice

Figure 28-2
-Refer to Figure 28-2. Suppose the Fed used contractionary policy to push short-run equilibrium to point C. If the short-run equilibrium remained at point C long enough

• A) the short-run Phillips curve would shift up.
• B) the short-run Phillips curve would shift down.
• C) the economy would move back to point A.
• D) the economy would stay at point C in the long run.

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Definitions:

Expert Power

Influence wielded by an individual due to their expertise, skills, or knowledge, which others perceive as valuable.

Referent Power

A form of influence based on the attractiveness and charisma of the leader or influencing agent.

Expert Power

The influence one possesses as a result of expertise, skills, or knowledge, which others perceive as valuable or essential.

Referent Power

A form of influence based on the leader's personal traits, where followers identify with and wish to emulate the leader.