Lower Than Expected Inflation Rate

question 10

Multiple Choice

Lower than expected inflation rate:

• A)​shifts short-run Phillips curve to the right.
• B)​shifts short-run Phillips curve to the left.
• C)​shifts both short-run and long-run Phillips curve to the right.
• D)​shifts both short-run and long-run Phillips curve to the left.

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Definitions:

Parent

A company that holds a controlling interest in one or more subsidiaries, or an individual who has a child.

Subsidiary

A company that is controlled by another company, known as the parent company, through majority share ownership.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance.

Variability

The degree to which data points in a data set differ from each other and from the mean, indicating the volatility or dispersion around the average value.