If People Correctly Anticipate That Inflation Will Fall by 1

question 151

Multiple Choice

If people correctly anticipate that inflation will fall by 1%, then

• A)the short-run Phillips curve shifts right and unemployment is unchanged.
• B)the short-run Phillips curve shifts right and unemployment rises.
• C)the short-run Phillips curve shifts left and unemployment is unchanged.
• D)the short-run Phillips curve would shift left and unemployment falls.

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Definitions:

Maltose

A sugar made from two glucose molecules bonded together, commonly produced during the digestion of starch.

Salivary Amylase

An enzyme found in saliva that begins the process of breaking down starches into sugars during digestion.

Hydrochloric Acid

A strong, corrosive acid that is a solution of hydrogen chloride (HCl) in water, used industrially and in digestion in the stomach.

Deactivated

A state in which a biological or chemical process, entity, or system is rendered inactive or non-functional.