Exhibit 17-4 Short-Run and Long-Run Phillips Curves

question 25

Multiple Choice

Exhibit 17-4 Short-run and long-run Phillips curves

Suppose the economy in Exhibit 17-4 is at point E₁, and the Fed increases the money supply. If people have adaptive expectations, then the economy will move:

• A) to point A in the short run and point B in the long run.
• B) directly to point B.
• C) to point C in the short run and point D in the long run.
• D) directly to point D.

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Definitions:

Stepfather

Stepfather is a man who is married to one's parent after the divorce or separation of one's biological parents, or the death of one's biological father, and who may serve as a parental figure.

Stepparent

An individual who is married to a person who has one or more children from a previous relationship, but is not their biological parent.

Stepfamily Cycle

The progression and evolving dynamics within a stepfamily, from initial formation through integration and stabilization, involving adjustment to new roles and relationships.

Stepparents

Individuals who become parents through marriage, partnering with someone who already has children from a previous relationship.