What Is the Long-Run Effect of an Increase in Expected

question 110

Multiple Choice

What is the long-run effect of an increase in expected inflation predicted by the Phillips curve model?

• A) higher inflation,but no change in unemployment
• B) higher inflation and higher output
• C) lower inflation and lower unemployment
• D) no change in inflation,but lower unemployment

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Definitions:

Succulent Leaves

Thick, fleshy leaves adapted for water storage, commonly found in plants that inhabit dry environments or soil conditions.

Aquatic Habitat

encompasses ecosystems in water environments, providing living space and necessary resources for aquatic organisms.

Cold Ecosystem

An ecosystem characterized by low temperatures and short growing seasons, often found in polar or high-altitude regions.