Use the Following to Answer Question 118

question 185

Multiple Choice

Use the following to answer question 118:
-(Figure: Expected Inflation and the Short-Run Phillips Curve) SRPC₀ is the Phillips curve with an expected inflation rate of zero; SRPC₂ is the Phillips curve with an expected inflation rate of 2%. Refer to Figure: Expected Inflation and the Short-Run Phillips Curve. Suppose that this economy has an unemployment rate of 6%, inflation of 2%, and an expectation of 2% future inflation. If the central bank decreases the money supply such that aggregate demand shifts to the left and unemployment rises to 8%, then inflation will:

• A) fall to zero.
• B) not change.
• C) rise to 2%.
• D) rise to 4%.

---

Definitions:

Cardiac Rehabilitation

A supervised program that includes exercise training, health education, and stress reduction for patients who have experienced heart-related problems.

Second Heart Attack

A subsequent myocardial infarction that occurs in an individual who has already experienced one heart attack, emphasizing the importance of ongoing cardiac care and lifestyle modification.

Cardiovascular Disease

A broad term for diseases that involve the heart or blood vessels, including coronary artery disease, heart failure, and stroke.

Behaviors

Actions or reactions of individuals, usually in relation to their environment, which can be observable by others.