If Inflation Expectations Rise,the Short-Run Phillips Curve Shifts

question 140

Multiple Choice

If inflation expectations rise,the short-run Phillips curve shifts

• A)right,so that at any unemployment rate inflation is higher in the short run than before.
• B)left,so that at any unemployment rate inflation is higher in the short run the before.
• C)right,so that at any unemployment rate inflation is lower in the short run than before.
• D)left,so that at any unemployment rate inflation is lower in the short run than before.

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Definitions:

Mass Producer

A mass producer is a company or individual that manufactures goods in large quantities using standardized processes, usually to meet widespread consumer demand.

Productivity

A measure of the efficiency of production, often quantified as the ratio of output to inputs used in the production process.

Wage Rates

The standard amount of compensation given to employees for their services, usually expressed per hour or year.

Global Economy

The interconnected worldwide economic activities that involve the exchange of goods and services across national borders.