An Increase in the Expected Rate of Inflation

question 119

Multiple Choice

An increase in the expected rate of inflation:

• A) shifts the short-run Phillips curve down.
• B) shifts the short-run Phillips curve up.
• C) moves the economy along the short-run Phillips curve to higher rates of inflation.
• D) moves the economy along the short-run Phillips curve to higher rates on unemployment.

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Definitions:

EPSPs

Excitatory PostSynaptic Potentials (EPSPs) are changes in membrane potential that increase the likelihood of generating a postsynaptic action potential.

Axon Hillock

The cone-shaped area of a neuron where the cell body transitions to the axon, and from which action potentials are initiated.

Democracy

A form of government in which power is vested in the hands of the people, either directly or through elected representatives.

EPSPs

Excitatory Postsynaptic Potentials, which are temporary increases in postsynaptic membrane potential due to the flow of positively charged ions into the postsynaptic cell, making it more likely to fire an action potential.