The Very Low Inflation That the U

question 134

Multiple Choice

The very low inflation that the U.S. experienced in 2009 and 2010

• A)appears to have reduced expected inflation, and the short-run Phillips curve shifted downward as a result.
• B)appears to have reduced expected inflation, and the short-run Phillips curve shifted upward as a result.
• C)does not appear to have reduced expected inflation, and the short-run Phillips curve remained relatively stable as a result.
• D)does not appear to have reduced expected inflation, but the short-run Phillips curve shifted dramatically nevertheless.

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Definitions:

Farm Prices

The prices received by farmers for their output, which can be influenced by factors such as supply and demand, subsidies, and market conditions.

Balance of Payments

A record of all transactions made between entities in one country and the rest of the world over a period of time, including trade, services, and financial transfers.

Foreign Aid

Financial or other assistance provided by one country to another, often in the form of grants, loans, or technical assistance.

Private International Borrowing

The process where private sector entities or corporations obtain loans from foreign lenders, often affecting international capital flow.