What Is the Long-Run Effect of an Increase in Expected

question 110

Multiple Choice

What is the long-run effect of an increase in expected inflation predicted by the Phillips curve model?

• A) higher inflation,but no change in unemployment
• B) higher inflation and higher output
• C) lower inflation and lower unemployment
• D) no change in inflation,but lower unemployment

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Definitions:

Genital Arousal

The state of sexual excitement and readiness for sexual activity, evidenced by physiological reactions in the genital organs.

Night Terrors

Intense episodes of panic and fear that occur during sleep, typically in children, causing them to wake up in a terrified state.

Bed-Wetting

The involuntary urination while asleep after the age at which staying dry at night can be reasonably expected.

REM Sleep

A phase of sleep characterized by rapid eye movement, increased brain activity, vivid dreaming, and temporary paralysis of major muscles.