An Increase in the Expected Inflation Rate Will

question 235

Multiple Choice

An increase in the expected inflation rate will

• A)shift the short-run Phillips curve to the right.
• B)shift the short-run Phillips curve to the left.
• C)reduce the inflation rate.
• D)reduce the unemployment rate.

---

Definitions:

Medicare

A federal program that provides for (1) compulsory hospital insurance for senior citizens, (2) low-cost voluntary insurance to help older Americans pay physicians’ fees, and (3) subsidized insurance to buy prescription drugs. Financed by payroll taxes.

Public Bureaucracies

Government agencies and departments responsible for implementing laws and policies, often characterized by defined procedures and hierarchical structures.

Competitive Market Pressures

The forces exerted by competitors in a market that compel businesses to improve quality, service, and efficiency to maintain or enhance their market position.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not reduce availability to others, such as public parks and national defense.