How Does a Decrease in the Expected Rate of Inflation

question 82

Multiple Choice

How does a decrease in the expected rate of inflation shift the Phillips curves?

• A)It shifts both the short-run and long-run Phillips curves to the right.
• B)It shifts both the short-run and long-run Phillips curves to the left.
• C)It shifts only the short-run Phillips curve to the right.
• D)It shifts only the short-run Phillips curve to the left.

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Definitions:

Amplitude

In physics, it refers to the maximum extent of a vibration or oscillation, measured from the position of equilibrium.

Rods

Photoreceptors in the retina of the eye that are responsible for vision at low light levels, but cannot discern color.

Cones

Photoreceptor cells in the retina of the eye which function best in bright light and are responsible for color vision and high spatial acuity.

Retina

The light-sensitive layer of tissue at the back of the inner eye that converts light into neural signals.