The Long-Run Phillips Curve Shifts to the Left or the Right

question 72

True/False

The long-run Phillips curve shifts to the left or the right as expectations of inflation change.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually pay.

Marginal Benefit

This is the additional benefit received from the consumption of one more unit of a good or service.

Output Level

Refers to the quantity of goods or services produced by a firm or economy at a given point in time.

Product Markets

Marketplaces where final goods or services are offered to consumers, businesses, and the government.