Suppose That Weather Around the World Is Especially Good Next

question 40

Multiple Choice

Suppose that weather around the world is especially good next year, so farmers have unusually good crops. What might we expect that this will do to the short-run and long-run Phillips curves?

• A) This will shift both the short-run and long-run Phillips curves to the right.
• B) This will shift both the short-run and long-run Phillips curves to the left.
• C) This will shift the short-run Phillips curve to the left, but not affect the long-run Phillips curve.
• D) This will shift the long-run Phillips curve to the left, but not affect the short-run Phillips curve.

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Definitions:

Longitudinal Study

An observational research method in which data is gathered for the same subjects repeatedly over a period of time.

Developmental Trends

Patterns and sequences of development observed over time, which can include physical, cognitive, and social changes.

Causality

The relationship between cause and effect, where one event (the cause) is understood to lead to another event (the effect) as a result.

Longitudinal Studies

Research designed to observe the same subjects over a period of time, allowing for the study of changes and developments.