Ceteris Paribus,an Increase in the Current or Actual Rate of Inflation

question 92

Multiple Choice

Ceteris paribus,an increase in the current or actual rate of inflation will cause

• A)the short-run Phillips curve to shift upward.
• B)the unemployment rate to decrease (a movement along the short-run Phillips curve).
• C)the long-run Phillips curve to shift leftward.
• D)expectations of future inflation rates to be revised downward.

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Definitions:

Legal Authority

The formal and legitimate power or right given to an entity or individual to make decisions, enact laws, or enforce rules and regulations.

United Nations

An international organization formed in 1945 to increase political and economic cooperation among its member countries.

Power Distance

A cultural dimension that reflects the degree to which less powerful members of a society accept and expect power to be distributed unequally.

Short-Termism

The focus on immediate gains or results at the expense of long-term strategy, sustainability, or investment. Often criticized in business and investment contexts.