If Workers Expect a Lower Rate of Inflation, the Short-Run

question 7

Multiple Choice

If workers expect a lower rate of inflation, the short-run Phillips curve will:

• A) remain constant, but there will be a movement down the curve.
• B) be unaffected.
• C) shift up.
• D) shift down.

---

Definitions:

Accounting Equation

The foundational principle in accounting that equates assets with the sum of liabilities and owner's equity: Assets = Liabilities + Equity.

Equity

Equity represents the ownership value held in assets after all liabilities have been subtracted, often referred to as net worth.

Sole Proprietorship

A business structure in which a single individual owns and operates the business, bearing unlimited personal liability.

Owner

An individual or entity that holds the legal right or title to something, such as a business or property.