If the Fed Announced a Policy to Reduce Inflation and People

question 45

Multiple Choice

If the Fed announced a policy to reduce inflation and people found it credible,the short-run Phillips curve would shift

• A)right and the sacrifice ratio would fall.
• B)right and the sacrifice ratio would rise.
• C)left and the sacrifice ratio would fall.
• D)left and the sacrifice ratio would rise.

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Definitions:

Peer Pressure

The influence exerted by a peer group in encouraging a person to change their attitudes, values, or behaviors to conform to group norms.

Casual Partners

Relationships that are formed without formal commitments or expectations, often characterized by their informal and non-exclusive nature.

Opposite Sex

A term traditionally used to refer to the gender binary, specifically the other gender in contrast to one’s own.

Heterosexual

A person who is sexually attracted to people of the opposite sex.