The Phillips Curve Shifts Because

question 10

Multiple Choice

The Phillips curve shifts because

• A) private behavior adapts to monetary policy.
• B) expected inflation changes.
• C) the central bank attempts to exploit the Phillips curve.
• D) all of the above.

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Definitions:

Payback Period

The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Initial Cost

The original cost of acquiring an asset, including purchase price and any expenses incurred to put the asset into use.

Cash Inflows

Money or equivalents received by a company during a specific period, which can come from operations, investments, or financing activities.

Payback Period

The duration it takes for an investment to return its initial cost to the investor, a measure of an investment's risk and liquidity.