Suppose the Unemployment Rate Goes Down

question 40

Multiple Choice

Suppose the unemployment rate goes down.According to the short-run Phillips curve, what will happen to the inflation rate?  

• A) The inflation rate will go up. 
• B) The inflation rate will go down. 
• C) The inflation rate will NOT change. 
• D) The inflation rate will become a deflation rate.

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Definitions:

Arthropods

Arthropods are invertebrate animals with an exoskeleton, a segmented body, and paired jointed appendages, including insects, arachnids, and crustaceans.

Cephalopods

Cephalopods are a class of mollusks that includes squid, octopuses, and cuttlefish, known for their advanced nervous systems, highly developed eyesight, and ability to change color and texture.

Annelids

A phylum of invertebrate worms characterized by segmented bodies and often found in wet environments.

Hemoglobin

A protein found in red blood cells that carries oxygen from the lungs to the body's tissues and returns carbon dioxide from the tissues back to the lungs.