In the Early 1970s,the Short-Run Phillips Curve Shifted

question 20

Multiple Choice

In the early 1970s,the short-run Phillips curve shifted

• A)rightward as inflation expectations rose.
• B)rightward as inflation expectations fell.
• C)leftward as inflation expectations rose.
• D)leftward as inflation expectations fell.

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Definitions:

Premium

An amount paid in excess of the normal or nominal value, often relating to the additional cost over the face value of securities or insurance charges beyond standard rates.

Bonds Payable

Long-term liabilities representing borrowed funds that a company is obliged to pay back with interest at specified times.

Valuation Account

An account used to adjust the carrying value of an asset or liability, such as an allowance for doubtful accounts or accumulated depreciation.