Ceteris Paribus, an Increase in the Current or Actual Rate

question 141

Multiple Choice

Ceteris paribus, an increase in the current or actual rate of inflation will cause

• A)the short-run Phillips curve to shift upward.
• B)the unemployment rate to decrease (a movement along the short-run Phillips curve).
• C)the long-run Phillips curve to shift leftward.
• D)expectations of future inflation rates to be revised downward.
• E)cause the Bank of Canada to enact expansionary monetary policy.

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The process of reducing a mathematical expression or problem to its most basic form.