Use the Following to Answer Questions

question 76

Multiple Choice

Use the following to answer questions :
Exhibit: AD-AS Shifts

-(Exhibit: Short-run Phillips Curve) As the short-run Phillips curve shifts from A to B to C to D:

• A) the expected rate of inflation is unchanged at every level of unemployment.
• B) there is a lower-expected rate of inflation at every level of unemployment.
• C) there is a higher-expected rate of inflation for every level of unemployment.
• D) the natural rate of unemployment falls.

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Definitions:

Voidable Contract

An agreement that may be annulled or declared void by one of the parties due to certain legal deficiencies or circumstances.

Rescinded

The act of revoking, canceling, or repealing a contract, decision, or agreement, making it as if it never existed.

Scienter

Deliberately or knowingly.

Duress

Any unlawful act or threat exercised on a person whereby the person is forced to enter into an agreement or to perform some other act against his or her will.