In Recent Years, Inflation Expectations Have Fallen

question 21

Multiple Choice

In recent years, inflation expectations have fallen. How did this shift the short-run Phillips curve, and what are the implications for unemployment?

• A) This shifted the short-run Phillips curve left, meaning that at any given inflation rate, unemployment will be lower in the short run than before.
• B) This shifted the short-run Phillips curve right, meaning that at any given inflation rate, unemployment will be lower in the short run than before.
• C) This shifted the short-run Phillips curve right, meaning that at any given inflation rate, unemployment will be higher in the short run than before.
• D) This shifted the short-run Phillips curve left, meaning that at any given inflation rate, unemployment will be higher in the short run than before.

---

Definitions:

Facet Satisfaction

The level of contentment one feels with various aspects of their job, such as pay, working conditions, or coworkers.

Equity Equation

An approach in organizational behavior focusing on fairness and justice in the allocation of resources and treatment of individuals.

Inputs

Resources, such as time, labor, and materials, used in the production process to create outputs or goods and services.

Outcomes

The results or consequences of an action or situation, often measured to assess the effectiveness of interventions or decisions.