Along a Short-Run Phillips Curve, Suppose the Expected Inflation Rate

question 89

Multiple Choice

Along a short-run Phillips curve, suppose the expected inflation rate is 6 percent. If the actual inflation rate turns out to be 8 percent, then

• A) there is a movement upward along the short-run Phillips curve.
• B) there is a movement downward along the short-run Phillips curve.
• C) there is a downward shift of the short-run Phillips curve.
• D) None of the above answers are correct.

---

Definitions:

Civil Liberties

Fundamental rights and freedoms protected from infringement by the government, such as free speech and privacy.

Communists

Refers to individuals who support or are members of a political ideology advocating for a classless society, primarily based on the theories of Karl Marx and Friedrich Engels.

New Coalition

A political or strategic agreement for cooperation among different political parties, factions, or interest groups.

Congress

The legislative branch of the United States federal government, consisting of two houses: the Senate and the House of Representatives.