If Changes in Inflation Are Higher Than Expected

question 209

Multiple Choice

If changes in inflation are higher than expected,

• A)the short-run Phillips curve will be positively sloped, but not vertical.
• B)the short-run Phillips curve will be negatively sloped.
• C)the short-run Phillips curve will be vertical.
• D)the long-run Phillips curve will be negative sloped.
• E)the short-run Phillips curve will be horizontal.

---

Definitions:

Harry Braverman

An American Marxist sociologist and writer known for his work on labor and the degradation of work in the twentieth century.

Capitalists

Individuals or entities that own capital, invest in businesses, and seek to generate profit from their investments.

Profits

The financial gains obtained when the revenues generated from a business activity exceed the expenses, costs, and taxes involved in sustaining the activity.

Control

The power to influence or direct people's behavior or the course of events.