When Actual Inflation Is Greater Than Expected Inflation

question 11

Multiple Choice

When actual inflation is greater than expected inflation,

• A)unemployment rises,according to Phillips-curve analysis.
• B)cyclical unemployment rises,according to Phillips-curve analysis.
• C)there are transfers from borrowers to lenders.
• D)there are transfers from lenders to borrowers.

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Definitions:

Misinformation Effect

A memory phenomenon in which a person's recall of an event becomes less accurate due to the introduction of misleading information.

Procedural Memory

Procedural memory involves the long-term memory of how to perform different actions and skills, essentially knowing "how" to do things, operating mostly at an unconscious level.

Long-Term Memory

A type of memory capable of storing an unlimited amount of information for periods ranging from a few days to a lifetime.

Declarative Memory

The aspect of human memory that involves the recall of facts and events.