If Inflation Expectations Rise, the Short-Run Phillips Curve Shifts

question 46

Multiple Choice

If inflation expectations rise, the short-run Phillips curve shifts

• A)right, so that at any inflation rate unemployment is higher in the short run than before.
• B)left, so that at any inflation rate unemployment is higher in the short run than before.
• C)right, so that at any inflation rate unemployment is lower in the short run than before.
• D)left, so that at any inflation rate unemployment is lower in the short run than before.

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Definitions:

Gas Flux

The rate of flow of gases into or out of a surface area.

Unweathered Lava

Refers to lava that has not been exposed to weathering processes and therefore maintains its original texture and composition.

Well-developed Soil

Soil that has gone through all stages of soil formation, resulting in distinct layers or horizons, and is capable of supporting plant life effectively.

Ash Blanketing

The covering of large areas with volcanic ash following an explosive volcanic eruption.