When Workers Expect More Inflation Than Actually Occurs

question 105

Multiple Choice

When workers expect more inflation than actually occurs:

• A)the Phillips curve becomes vertical.
• B)the long-run Phillips curve shifts to the right.
• C)the short-run Phillips curve shifts to the left.
• D)there will be a movement down the short-run Phillips curve.
• E)there will be a movement up the short-run Phillips curve.

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Definitions:

Dominant Culture

The culture of the most powerful group in society.

Middle-class Values

Norms, beliefs, and behavioral expectations typically associated with the middle socio-economic class, often emphasizing education, hard work, and respectability.

Social Sanctions

Measures that reinforce norms through rewards for conformity and penalties for nonconformity within a society.

Folkways

Norms for routine or casual interaction that guide everyday behavior in a society, often without much moral significance.