If Unemployment Is Above Its Natural Rate, What Happens to Move

question 179

Multiple Choice

If unemployment is above its natural rate, what happens to move the economy to long-run equilibrium?

• A)Inflation expectations rise, which shifts the short-run Phillips curve to the right.
• B)Inflation expectations rise, which shifts the short-run Phillips curve to the left.
• C)Inflation expectations fall, which shifts the short-run Phillips curve to the right.
• D)Inflation expectations fall, which shifts the short-run Phillips curve to the left.

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Definitions:

Antidepressant Drugs

Medications prescribed to relieve symptoms of depression by adjusting the chemical balance of neurotransmitters in the brain.

Biomedical Therapy

Treatment for psychological disorders that involves influencing brain chemistry, typically through drugs, surgical procedures, or similar medical interventions.

Anxiety Disorders

Psychological disorders characterized by distressing, persistent anxiety or maladaptive behaviors that reduce anxiety.

Free Association

A psychoanalytic process in which the patient speaks freely to reveal the unconscious thoughts and feelings that might be causing psychological distress.