According to the Expectations-Augmented Phillips Curve Model,the Amount by Which

question 23

Multiple Choice

According to the expectations-augmented Phillips curve model,the amount by which expansionary policies can lower the unemployment rate for every one percent increase in the inflation rate along a short-run Phillips curve,will hold only as long as private sector's expectations of inflation remains unchanged.When circumstances change and the public revise their expectations of inflation upward,the ___________ will shift ___________ and the rate of trade-off between unemployment and inflation will ___________.

• A) long-run Phillips curve;upward;worsen
• B) short-run Phillips curve;downward;improve
• C) long-run Phillips curve;downward;improve
• D) short-run Phillips curve;upward;worsen
• E) long-run Phillips curve;upward;improve

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Definitions:

Married-couple Families

Families consisting of a husband and wife as the main household members, possibly with children.

Poverty Rate

The percentage of the population living below the poverty line defined by national or international standards.

Official Poverty Rate

A government-calculated statistic that measures the proportion of the population whose income falls below the threshold considered necessary to meet basic living needs.