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

question 140

Multiple Choice

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

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

---

Definitions:

Amortized

Adjusted through gradual reduction of the loan balance or asset value over time by making regular payments that cover both principal and interest.

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its net identifiable assets.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.

Property, Plant, & Equipment

Long-term tangible assets that are used in the operation of a business and are expected to be used over more than one fiscal year.