Use the Information Below to Answer the Following Questions

question 5

Multiple Choice

Use the information below to answer the following questions.
Fact 28.4.2
The Reserve Bank of New Zealand signed an agreement with the New Zealand government in which the Bank agreed to maintain inflation inside a low target range. Failure to achieve the target would result in the governor of the Bank losing his job.
-Consider Fact 28.4.2. Choose the correct statement.

• A)The short-run Phillips curve shifted downward because people believed that the Bank of New Zealand was serious about meeting the new low inflation target.
• B)A movement occurred down along the short-run Phillips curve because although the inflation rate fell, expectations did not change.
• C)Neither actual inflation nor expected inflation changed, and there was no change in the short-run Phillips curve.
• D)The short-run Phillips curve was abolished and New Zealand now has only a long-run Phillips curve.
• E)The short-run Phillips curve shifted leftward because when inflation expectations fall, the natural unemployment rate decreases.

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Definitions:

Blood Glucose Levels

The concentration of glucose present in the blood, crucial for maintaining metabolic health.

Ghrelin Secretions

The release of the "hunger hormone" ghrelin by the stomach, which signals the brain to stimulate appetite and intake of food.

Neophobia

The fear of anything new or unfamiliar.

Basal Metabolic Rate

How quickly the body burns energy to support fundamental processes like breathing and temperature maintenance while in a state of rest.