(Figure: Understanding Phillips Curve Shifts) the Graph Shows Two

question 183

Multiple Choice

(Figure: Understanding Phillips Curve Shifts) The graph shows two Phillips curves.Suppose the economy originally faced curve PC₁.Which of the following would cause the curve to shift to PC₂?

• A) Workers in the economy are expecting lower inflation.
• B) The natural rate of unemployment rose.
• C) The nonaccelerating inflation rate of unemployment increased.
• D) The actual unemployment rate fell.

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Definitions:

Stomach

Muscular region of the vertebrate digestive tract, extending from the esophagus to the small intestine.

Suspension Feeders

Organisms that feed by filtering suspended matter and food particles from water, often found in aquatic environments.

Filter Feeders

Aquatic animals that feed by straining suspended matter and food particles from water.

Omnivores

Organisms that consume both plant and animal matter as part of their diet.