Figure 136 Alt Text for Figure 13

question 120

Multiple Choice

Figure 13.6 Alt text for Figure 13.6: In figure 13.6, a graph shows the short-run and long-run Phillips curves.
Long description for Figure 13.6: The x-axis is labelled, unemployment rate percent.The y-axis is labelled, inflation rate percent per year.A straight line labelled, short-run Philips Curve, begins at the top left corner and slopes down to the end of the x-axis.A straight line labelled, long-run Philips Curve is perpendicular to the x-axis, and begins from the x-axis value 5.Long-run Philips Curve intersects the short-run Philips Curve at point A (5, 2) , near the bottom of the line and passes through point C (5, 4.8%) near the top end.Point B (3%, 4.8%) is plotted near the left end of the short-run Philips Curve, with the same y-axis value as point C.The points are connected to their respective coordinates on the x and y-axes with dotted lines.
-Refer to Figure 13.6.If firms and workers have adaptive expectations, an expansionary monetary policy will cause the short-run equilibrium to move from

• A)point B to point C.
• B)point A to point C.
• C)point A to point B.
• D)point B to point A.
• E)point C to point B.

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Definitions:

Directly Address

To confront or deal with a matter openly and straightforwardly.

Different Time

A period distinct from the present, often implying a change in circumstances, environments, or conditions.

Confidentiality

The obligation to keep personal, medical, or official information secret and not to disclose it to unauthorized individuals.

Surveys

Research methods that collect data from a specific population to study opinions, behaviors, or characteristics, typically through questionnaires or interviews.