Monetary Policy in Hyperion

question 78

Multiple Choice

Monetary Policy in Hyperion
In Hyperion the Department of Finance is responsible for monetary policy. Hyperion has had an inflation rate of 25% for many years.
-Refer to Monetary Policy in Hyperion.Suppose that the Hyperion Department of Finance undertakes a public relations campaign to convince people that they will soon change monetary policy to reduce inflation to 12.5%.If Hyperions believe their government then which,if any,curve(s) shift right?

• A)the short-run and the long-run Phillips curve
• B)the short-run but not the long run Phillips curve
• C)the long-run but not the short-run Phillips curve
• D)neither the short-run nor the long-run Phillips curve

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