Suppose the Expected Inflation Rate Is 8 Percent and the Unemployment

question 323

Multiple Choice

Suppose the expected inflation rate is 8 percent and the unemployment rate is 3 percent.If the inflation rate rises to 10 percent and the expected inflation rate does not change,

• A) the short-run Phillips curve will shift upward.
• B) the short-run Phillips curve will shift downward.
• C) there will be a movement along the short-run Phillips curve.
• D) the natural unemployment rate will rise.

---

Definitions:

Interpersonal Conflict

A dispute or disagreement between individuals due to differences in opinions, values, or interests.

Opposition

Resistance or dissent in face of an idea, plan, or entity, often leading to conflict or debate.

Disputes

Conflicts or disagreements that arise between parties who have opposing views or interests.

Intrasender Conflict

A type of conflict that occurs when a person receives conflicting messages or expectations from the same sender.