A Decrease in the Expected Inflation Rate Leads to ________

question 59

Multiple Choice

A decrease in the expected inflation rate leads to ________ in the long-run Phillips curve and ________ in the short-run Phillips curve.

• A) an upward shift; no shift
• B) a leftward shift; an upward shift
• C) no shift; no shift
• D) no shift; a downward shift

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Definitions:

Pelvic Girdle

The ring of bones in the lower part of the torso, composed of the hip bones that support the spinal column and connect the skeleton of the leg.

Pelvic Cavity

A body cavity that is bounded by the bones of the pelvis and contains reproductive organs, the urinary bladder, and the rectum.

Bipedal Walking

The ability to walk upright on two legs, a characteristic feature of humans and their ancestors that distinguishes them from other primates.

Phalanges

Bones in the fingers or toes.