Ceteris Paribus,an Increase in the Current or Actual Rate of Inflation

question 92

Multiple Choice

Ceteris paribus,an increase in the current or actual rate of inflation will cause

• A)the short-run Phillips curve to shift upward.
• B)the unemployment rate to decrease (a movement along the short-run Phillips curve).
• C)the long-run Phillips curve to shift leftward.
• D)expectations of future inflation rates to be revised downward.

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Definitions:

Ether

A class of organic compounds characterized by an oxygen atom connected to two alkyl or aryl groups, used as solvents and in chemical synthesis.

Tertiary Amine

An amine where the nitrogen atom is connected to three alkyl or aryl groups.

Ethanol

Ethanol, also known as ethyl alcohol, is a volatile, flammable, colorless liquid commonly used as a psychoactive drug in alcoholic beverages and as a solvent in the chemical industry.

Metabolic Oxidation

The process in which organic substances are broken down to produce energy in cells.