If the Expected Rate of Inflation Rose at the Same

question 70

Multiple Choice

If the expected rate of inflation rose at the same time the natural rate of unemployment rose,the Phillips curve

• A)would shift down.
• B)would shift up.
• C)would not move.
• D)might shift up or down or not move,depending on which effect was larger.

---

Definitions:

Observing Behavior

The act of watching or noting the actions of individuals or groups for the purpose of analysis or study.

Attribution Theory

The view that people act as intuitive scientists when they observe other people’s behavior and infer explanations about why those people acted the way they did.

Intuitive Scientists

A theory suggesting that people often act like amateur scientists, attempting to understand and predict other people's behavior by forming hypotheses and making deductions.

Social Cognition Theory

A theory that focuses on how people process, store, and apply information about other people and social situations, emphasizing the role of cognitive processes in understanding social interaction.