In the Short Run, an Increase in Inflation Initiated by the Reserve

question 6

Multiple Choice

In the short run, an increase in inflation initiated by the Reserve Bank and not matched by an increase in the expected inflation rate results in ________ in the long-run Phillips curve and ________ in the short-run Phillips curve.

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

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Definitions:

Self-report

A method of gathering data where individuals provide information about themselves, often used in surveys and questionnaires.

Personality-relevant

Pertain to aspects or factors that are important or significant to the understanding or analysis of an individual’s character traits.

Trait Terms

Descriptors used to identify consistent patterns in an individual's behavior, thought, and emotions.

Big Five

A psychological model outlining five major dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.