If Inflation Expectations Decline,then the Short-Run Phillips Curve Shifts

question 153

Multiple Choice

If inflation expectations decline,then the short-run Phillips curve shifts

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

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Definitions:

Linear Optimization Models

These are mathematical models used to find the best outcome, such as maximum profit or lowest cost, under given constraints by using linear equations.

Balance Constraints

Restrictions in optimization problems that ensure the total input equals the total output, maintaining equilibrium.

Optimal Solution

The most efficient, cost-effective, or achievable outcome within a given set of constraints and conditions.

Constraints

Limitations or conditions that must be followed or satisfied within problem-solving or optimization processes.