If Changes in Inflation Are Higher Than Expected

question 240

Multiple Choice

If changes in inflation are higher than expected

• A)the short-run Phillips curve will be positively sloped,but not vertical.
• B)the short-run Phillips curve will be negatively sloped.
• C)the short-run Phillips curve will be vertical.
• D)the long-run Phillips curve will be negatively sloped.

---

Definitions:

Perfectly Inelastic

A scenario in which the quantity demanded or supplied does not change in response to a change in price.

Midpoint Formula

A mathematical method used to find the exact middle point between two defined points on a line segment, calculated as the average of the x-coordinates and the y-coordinates of the points.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicative of the good's necessity or luxury status.

Excise Tax

A tax applied specifically on the sale of certain goods, services, or activities, which is often included in the price of the product.