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Changes in Which of the Following Shift the Short-Run Phillips

question 113

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Changes in which of the following shift the short-run Phillips curve?
i.Changes in the natural unemployment rate
ii.Changes in the expected inflation rate
iii.Changes in the inflation rate


Definitions:

Firm's Earnings

The net profit a company achieves in a given period, calculated as revenues minus costs and expenses before taxation.

Information Content Effect

A market phenomenon where stock prices adjust in response to the news contained in a company announcement, suggesting the news has value for investors’ decisions.

Dividend Payout

The segment of a company's income that is given to shareholders in dividends.

Residual Dividend

A policy whereby a company pays dividends to its shareholders from the residual or leftover equity once all operational and capital expenditure needs are met.

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