An Increase in the Expected Inflation Rate Shifts the

question 21

Multiple Choice

An increase in the expected inflation rate shifts the

• A) short-run Phillips curve downward.
• B) short-run Phillips curve upward.
• C) long-run Phillips curve upward.
• D) long-run Phillips curve downward.

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Definitions:

Sperling

A psychologist who conducted pioneering research on the capacity of sensory memory, using a technique that demonstrated the brief duration of iconic memory.

Information-processing

A cognitive approach that focuses on how people process, store, and retrieve information.

Serial Position Effect

A memory phenomenon where individuals are more likely to remember items at the beginning (primacy effect) and end (recency effect) of a list, than those in the middle.

Three-stage Model

A model describing memory processing in three stages: sensory memory, short-term memory, and long-term memory.