A Decrease in Expected Inflation Shifts Which of the Following

question 134

Multiple Choice

A decrease in expected inflation shifts which of the following curves, and in what direction?

• A) It shifts the short-run Phillips curve right.
• B) It shifts the short-run Phillips curve left.
• C) It shifts the long-run Phillips curve right.
• D) It shifts the long-run Phillips curve left.

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Definitions:

Currency

A system of money in general use in a particular country or region, facilitating trade and economic transactions.

Second Currency

An alternate form of currency, sometimes unofficial or digital, used alongside a primary currency within an economy.

Balance Of Payments

A comprehensive record of all economic transactions between the residents of a country and the rest of the world within a specific time period.

Country

A distinct territorial body or political entity that is recognized as an independent nation.