If People Believe That the Central Bank Is Going to Reduce

question 1

Multiple Choice

If people believe that the central bank is going to reduce inflation

• A)the short-run Phillips curve shifts right and the sacrifice ratio will rise.
• B)the short-run Phillips curve shifts right and the sacrifice ratio will fall.
• C)the short-run Phillips curve shifts left and the sacrifice ratio will rise.
• D)the short-run Phillips curve shifts left and the sacrifice ratio will fall.

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Definitions:

Actin

A protein that is essential for the contraction of muscle cells and plays a role in various types of cell movement and structure.

Blood

A vital bodily fluid in humans and other animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away.

Cartilage

A flexible, connective tissue found in various forms in the larynx and respiratory tract, joints, and ear.

Nerve

A bundle of fibers that transmits electrical impulses toward and away from the brain and central nervous system.