-In the Above Figure, What Might Have Shifted the Short-Run

question 255

Multiple Choice

-In the above figure, what might have shifted the short-run Phillips curve from SRPC? to SRPC? while leaving the long-run Phillips curve unchanged at LRPC?

• A) The natural unemployment rate increased.
• B) The natural unemployment rate decreased.
• C) The expected inflation rate increased.
• D) The expected inflation rate decreased.

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Definitions:

Comparison Level

In social psychology, a standard by which people evaluate the quality of their relationships, based on past experiences.

High School

An educational institution that provides secondary education and marks the stage before one enters tertiary education or employment.

College Students

Individuals enrolled in an institution of higher education, aiming to achieve degrees or certifications at various academic levels.

Positive Experiences

Events or interactions that evoke good feelings and are beneficial for individual well-being, contributing to overall happiness and satisfaction.