If a Central Bank Attempts to Lower the Inflation Rate

question 113

Multiple Choice

If a central bank attempts to lower the inflation rate but the public doesn't believe the inflation rate will fall as far as the central bank says, then in the short run unemployment

• A)rises.As inflation expectations adjust, the short-run Phillips curve shifts right.
• B)rises.As inflation expectations adjust, the short-run Phillips curve shifts left.
• C)falls.As inflation expectations adjust, the short-run Phillips curve shifts right.
• D)falls.As inflation expectations adjust, the short-run Phillips curve shifts left.

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Definitions:

Germinal Stage

The initial phase of prenatal development that spans from conception to the implantation of the embryo in the uterine wall.

Blastocyst

An early stage in human embryonic development that consists of a sphere of cells surrounding a fluid-filled cavity and the cluster of cells from which the embryo develops.

Embryonic Stage

The period in prenatal development from the second to the eighth week after fertilization, during which major organs and structures of the organism begin to develop.

Fetal Stage

The developmental period in pregnancy from the ninth week after fertilization until birth, when significant growth and maturation of the fetus occur.