Suppose That the Expected Inflation Rate Is 8 Percent and the Unemployment

question 90

Multiple Choice

Suppose that the expected inflation rate is 8 percent and the unemployment rate is 3 percent. If the actual inflation rate rises to 10 percent and the expected inflation rate does not change, then

• A) the short-run Phillips curve will shift upward.
• B) the short-run Phillips curve will shift downward.
• C) there will be a movement along the short-run Phillips curve.
• D) the natural unemployment rate will rise.

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Definitions:

Domestic Violence

Physical, sexual, psychological, or emotional abuse by one person against another within a domestic setting, such as in marriage or cohabitation.

Underreported

Referring to incidents or issues that are not fully or adequately reported or disclosed.

Weapons Effect

The increase in aggression that occurs as a result of the mere presence of a weapon.

Consciously Aware

The state of being fully alert, informed, and attentive to one's surroundings or internal states.