The Expectations-Augmented Phillips Curve Implies That as Expected Inflation Increases,nominal

question 103

Multiple Choice

The expectations-augmented Phillips curve implies that as expected inflation increases,nominal wages ________ to prevent real wages from ________.

• A)fall;rising
• B)fall;falling
• C)rise;falling
• D)rise;rising

---

Definitions:

Prenatal Substance Abuse

The use of drugs, alcohol, or other substances by a pregnant woman, potentially harming the fetus.

Teratology

The study of abnormalities of physiological development, often focusing on the causes of birth defects and their prevention.

Caffeine Intake

The consumption of caffeine, a stimulant found in foods and beverages such as coffee, tea, and chocolate, which affects the central nervous system.

Miscarriage

The spontaneous loss of a pregnancy before the fetus can survive outside the uterus, typically before the 20th week of pregnancy.