An Increase in the Expected Inflation Rate Will

question 31

Multiple Choice

An increase in the expected inflation rate will:

• A)shift the short-run Phillips curve upward and to the right.
• B)shift the short-run Phillips curve downward and to the left.
• C)not shift the short-run Phillips curve unless the unemployment rate changes.
• D)cause the unemployment rate associated with each inflation rate to decrease.
• E)tend to increase production unless the actual inflation rate also increases.

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Definitions:

Fixture

An item of property that is attached to a building or land in such a way that it is considered legally part of the property.

Farmer

An individual or entity engaged in the practice of cultivating land, raising crops, and feeding, breeding, and raising animals or produce as part of agriculture.

Barn

A large building used for the storage of farm products, sheltering livestock, or agricultural equipment storage.

Uniform Commercial Code

A set of laws that provide legal rules and regulations governing commercial or business dealings and transactions.