A Movement to the Left Along a Given Short-Run Phillips

question 54

Multiple Choice

A movement to the left along a given short-run Phillips curve could be caused by

• A)a reduction in the natural rate of unemployment or expansionary monetary policy.
• B)expansionary monetary policy, but not a reduction in the natural rate of unemployment.
• C)either a reduction in the natural rate of unemployment or a contractionary monetary policy.
• D)contractionary monetary policy, but not a reduction in the natural rate of unemployment.

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Definitions:

Delay Gratification

The capacity to withstand the urge for an instant gratification in favor of a future reward.

Immediate Reward

A reward received directly after completing a task or activity, often motivating future behavior.

Overjustification Effect

A phenomenon where providing excessive external rewards for an already internally rewarding activity decreases the intrinsic motivation to perform that activity.

Opponent-process Effect

A psychological and neurological model that explains contrasting color after-images and emotional contrasts.