Which of the Following Would Shift the Short-Run Phillips Curve

question 63

Multiple Choice

Which of the following would shift the short-run Phillips curve?

• A)​an negative supply shock
• B)​an increase in inflationary expectations
• C)​a decrease in inflationary expectations
• D)​All of the above.

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Definitions:

Discounting

The process of determining the present value of a future amount of money or stream of cash flows given a specific rate of return.

Compounded Annually

Interest on an investment that is calculated once a year on both the initial principal and the accumulated interest from previous periods.

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, so that the balance grows at an increasing rate.

Compounded Annually

A method of calculating interest in which the accumulated interest is added to the principal at the end of each year, resulting in interest on interest in successive years.