If Inflation Expectations Rise, the Short-Run Phillips Curve Shifts

question 46

Multiple Choice

If inflation expectations rise, the short-run Phillips curve shifts

• A)right, so that at any inflation rate unemployment is higher in the short run than before.
• B)left, so that at any inflation rate unemployment is higher in the short run than before.
• C)right, so that at any inflation rate unemployment is lower in the short run than before.
• D)left, so that at any inflation rate unemployment is lower in the short run than before.

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Definitions:

Texture Gradient

A depth cue in perception, indicating that a surface with a denser texture appears further away, and one with a coarser texture appears closer.

Relative Size

A perceptual cue that allows the brain to determine the size of an object in relation to others, aiding in the perception of depth and distance.

Ponzo Illusion

A visual illusion where two lines of the same length appear different in length due to converging parallel lines.

Müller-Lyer Illusion

A visual illusion in which two lines of the same length appear to be of different lengths due to the placement of arrow-like figures at the ends.