Suppose a Central Bank Takes Actions That Will Lead to a Higher

question 32

Multiple Choice

Suppose a central bank takes actions that will lead to a higher inflation rate.The public,however,is slow to adjust its expectation of inflation.Then,in the short run,unemployment

• A)rises.As inflation expectations adjust,the short-run Phillips curve shifts right.
• B)rises.As inflation expectations adjust,the short-run Phillips curve shifts left.
• C)falls.As inflation expectations adjust,the short-run Phillips curve shifts right.
• D)falls.As inflation expectations adjust,the short-run Phillips curve shifts left.

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Definitions:

Granite

A hard, granular, intrusive igneous rock composed mainly of quartz, mica, and feldspar.

Isotopes

Variants of chemical elements that have the same number of protons but different numbers of neutrons in their nuclei, affecting their atomic mass but not their chemical properties.

Conglomerate

A coarse-grained sedimentary rock composed of rounded fragments or clasts of pre-existing rocks cemented together.

Unconformity

A geological surface that represents a time gap in the rock record, often where older rocks are overlain by much younger rocks without intermediate layers.