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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 ________.


Definitions:

Elasticity Of Supply

A measure of how much the quantity supplied of a good changes in response to a change in price.

Shifting Resources

The process of reallocating resources from one use to another, often in response to changes in market conditions or economic priorities.

Production Process

The series of steps and operations involved in the manufacturing of a product or the delivery of a service.

Price Inelastic

Describes a situation in which the demand for a good or service changes little with a change in price.

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