If the Expected Inflation Rate Changes, the Long-Run Phillips Curve

question 117

Multiple Choice

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

• A) does not shift; does not shift
• B) does not shift; shifts upward
• C) shifts rightward; shifts upward
• D) shifts rightward; shifts downward
• E) shifts rightward; does not shift

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Definitions:

Long-term

Pertaining to a time frame that extends over a significant period, usually referring to plans, investments, or strategies that unfold or mature over several years.

Corporate Strategy

Organizational-level decisions that focus on long-term survival.

Healthy Food Choices

Selecting foods that offer nutritional benefits, like fruits, vegetables, whole grains, and lean proteins, for a balanced diet.

Regional Food Interests

Preferences and trends in food consumption that are distinct to a particular geographical area or culture.