In the Short Run, a Surprise Reduction of Inflation by the Fed

question 170

Multiple Choice

In the short run, a surprise reduction of inflation by the Fed results in ________ in the long-run Phillips curve and ________ in the short-run Phillips curve.

• A) no change; no change
• B) a leftward shift; an upward shift
• C) no change; a downward shift
• D) a rightward shift; an upward shift
• E) a rightward shift; a downward shift

Grasp the principles of reinforcement theory and its schedules.

Understand attribution theory and common errors in attribution.

Appreciate the significance of knowing perceptual distortions in business and personal contexts.

Grasp the relationship between behavior, cognitive processes, and environmental factors according to social cognitive theory.

---

Definitions:

Durable

Referring to items, goods, or materials that are designed to withstand wear, pressure, or damage; long-lasting.

Influences

Forces or factors that have an effect on the behavior, opinions, or development of someone or something.

Sleeper Effect

A delayed increase in the impact of a message that occurs when an initially discounted message becomes effective, as the reason for discounting it is forgotten.

Phenomenon

An observable event or fact, especially one that is significant, unusual, or extraordinary.