If Inflation Expectations Rise, the Short-Run Phillips Curve Shifts

question 46

Multiple Choice

If inflation expectations rise, the short-run Phillips curve shifts

• A)right, so that at any inflation rate unemployment is higher in the short run than before.
• B)left, so that at any inflation rate unemployment is higher in the short run than before.
• C)right, so that at any inflation rate unemployment is lower in the short run than before.
• D)left, so that at any inflation rate unemployment is lower in the short run than before.

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Definitions:

Consolidated Net Income

The total amount of net income earned by a parent company and its subsidiaries, presented in the consolidated financial statements.

Non-Controlling Interest

A financial interest in a subsidiary not attributed to the parent company, representing minority shareholders' equity in the subsidiary's net assets.

Bonds Payable

Long-term liabilities representing money owed by a corporation or government to bondholders, to be repaid at a specific future date.

Straight Line Amortization

A method of amortizing an intangible asset evenly over its useful life.