An Increase in Expected Inflation Will Affect the Short-Run Phillips

question 88

Multiple Choice

An increase in expected inflation will affect the short-run Phillips curve:

• A) by shifting it downward; the actual rate of inflation at any given unemployment rate will fall by the same amount.
• B) by shifting it upward; the actual rate of inflation at any given unemployment rate will also be higher when the expected inflation rate is higher.
• C) by moving along the same curve, where it equals the actual rate of inflation.
• D) only if the economy is at the nonaccelerating inflation rate of unemployment.

---

Definitions:

Functional Headings

Titles or labels used in documents to organize content into sections that indicate the purpose or topic of each section.

Active-voice Verbs

Verbs used in sentences where the subject performs the action expressed by the verb, making the writing more direct and clear.

Writing Skills

The ability to express thoughts, ideas, and information effectively and clearly through written language.

Employee Use

The manner in which employees utilize resources, tools, or policies provided by their employer for work-related tasks.