If the Expected Rate of Inflation Rose at the Same

question 29

Multiple Choice

If the expected rate of inflation rose at the same time the natural rate of unemployment rose,the short-run Phillips curve

• A)would shift down.
• B)would shift up.
• C)would not move.
• D)might shift up or down or not move, depending on which effect was larger.

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Definitions:

Poisson Parameter

A parameter of the Poisson distribution that represents the average number of occurrences of an event in a fixed interval of time or space.

Mean Number

The arithmetic average of a set of values, calculated by dividing the sum of all values by the number of values.

Poisson Probability

The probability of a given number of events happening in a fixed interval of time or space when these events occur with a known constant mean rate and independently of the time since the last event.

Binomial Probabilities

The probabilities of achieving a specific number of successes in a fixed number of Bernoulli trials, characterized by only two possible outcomes.