Monetary Policy in Hyperion

question 89

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 left?

• 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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Definitions:

Release

To allow or enable escape from confinement; in legal terms, it can involve the relinquishing of a right or claim.

Hang-gliding

An air sport where a pilot flies a light and non-motorized foot-launchable aircraft called a hang glider.

Responsible

Having an obligation to do something, or having control over or care for someone, as part of one's job or role.

Waiver

The voluntary relinquishment or surrender of a right, claim, or privilege.