Refer to Monetary Policy in Southland

question 12

Multiple Choice

Refer to Monetary Policy in Southland.Suppose that the Southland Department of Finance undertakes a public relations campaign to convince people that they will soon change monetary policy to reduce inflation to 12.5%.If Southlanders believe their government then which,if any,curve(s) shift left?

• A) the short-run and the long-run Phillips curve
• B) the short-run but not the long run Phillips curve
• C) the long-run but not the short-run Phillips curve
• D) neither the short-run nor the long-run Phillips curve

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