Which of the Following Leads to a Downward Shift in the Short-

question 156

Multiple Choice

Which of the following leads to a downward shift in the short- run Phillips curve?

• A)People expect the unemployment rate to increase.
• B)People expected inflation to be 5 per cent last year and now expect inflation to be 3 per cent this year.
• C)Unexpected inflation increases.
• D)The long- run Phillips curve shifts rightward.

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Definitions:

Economists

Professionals who study and analyze the production, distribution, and consumption of goods and services.

Economic Development

Refers to the process by which a country improves the economic, political, and social well-being of its people.

Trade Barriers

Restrictions imposed by governments to regulate international trade, including tariffs, quotas, and non-tariff barriers.

Developing Countries

Nations with lower levels of industrialization, lower standards of living, and lower Human Development Index (HDI) scores compared to more developed countries.