Expectations of a Higher Inflation Rate Shift the Short-Run Aggregate

question 73

Multiple Choice

Expectations of a higher inflation rate shift the short-run aggregate supply curve to the _____, changing the trade-off between inflation and unemployment. As a result, the short-run Phillips curve shifts _____.

• A) left; down
• B) right; up
• C) left; up
• D) right; down

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Definitions:

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Serum Potassium

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