If Inflation Expectations Rise, How Do the Short-Run Phillips Curve

question 146

Multiple Choice

If inflation expectations rise, how do the short-run Phillips curve and unemployment change?

• A) The short-run Phillips curve shifts right, so that at any inflation rate unemployment is higher.
• B) The short-run Phillips curve shifts left, so that at any inflation rate unemployment is higher.
• C) The short-run Phillips curve shifts right, so that at any inflation rate unemployment is lower.
• D) The short-run Phillips curve shifts left, so that at any inflation rate unemployment is lower.

---

Definitions:

Graduation Ceremonies

Events marking the completion of a course of study, where degrees or diplomas are conferred upon graduating students.

Picnics

A leisure activity that involves eating a meal outdoors, typically in a scenic or park setting.

Cremation

The process of reducing a dead body to ashes by burning, often considered an alternative to burial in certain cultures or religions.

Funeral Rite

Ceremonies and rituals conducted to honor and commemorate a person who has died, varying widely among different cultures and religions.