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

question 2

Multiple Choice

According to the expectations-augmented Phillips curve model,the amount by which contractionary policies can lower the inflation rate for every one percent increase in the unemployment 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 downward,the ___________ will shift ___________ and the rate of trade-off between unemployment and inflation will ___________.

Definitions:

Grounding

In a psychological context, it refers to techniques used to bring someone fully into the present and calm the mind, often used in managing anxiety or stress.

Control Theory

Holds that the rewards of deviance and crime are ample. Therefore, nearly everyone would engage in deviance and crime if they could get away with it. From this point of view, the degree to which people are prevented from violating norms and laws accounts for variations in the level of deviance and crime.

Deviant Impulses

refer to thoughts or behaviors that significantly deviate from the societal norms or values.

Commit Crimes

The act of engaging in activities that are declared illegal by law, which can involve violations ranging from minor infractions to serious felonies.