Based on the Phillips Curve, When the Actual Rate of Inflation

question 15

Multiple Choice

Based on the Phillips Curve, when the actual rate of inflation is greater than the expected rate, the unemployment rate will

• A) rise temporarily, but decreases in nominal wages will bring the expected and actual rates of inflation into balance.
• B) rise temporarily, but increases in nominal wages will bring the expected and actual rates of inflation into balance.
• C) fall temporarily, but increases in nominal wages will bring the expected and actual rates of inflation into balance.
• D) fall temporarily, but decreases in nominal wages will bring the actual and expected rates of inflation into balance.

---

Definitions:

Feature-Detector Cells

Neurons in the brain that specialize in recognizing specific features of an environment, such as angles, lines, and movement.

Visual Cortex

The segment of the cerebral cortex involved in visual information processing, found at the back part of the brain.

Size Constancy

The perceptual phenomenon where the perceived size of an object remains constant despite changes in the size of the object's image on the retina due to varying distances.

Perception

The cognitive process of interpreting and making sense of sensory information from the environment, influencing how one understands and interacts with the world.