If the Expected Inflation Rate Rises,then the Short-Run Phillips Curve

question 49

Multiple Choice

If the expected inflation rate rises,then the short-run Phillips curve ________ and the long-run Phillips curve ________.

• A)shifts;does not shift
• B)might shift;shifts only if the short-run Phillips curve shifts
• C)does not shift;does not shift
• D)shifts;shifts
• E)does not shift;shifts

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Definitions:

Production Budget

A financial plan that estimates the number of units to be produced in a future period, based on sales forecasts and inventory levels.

Sales Budget

A financial plan that estimates the expected revenues from sales over a specific period.

Budgeted Accounts Receivable

The forecasted amount of money owed to a business by its customers for goods or services provided on credit.

Credit Sales

Sales for which payment is not received at the time of sale but is expected to be paid at a later date.