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:

Unemployment

A situation where an individual who is actively searching for employment is unable to find work.

FUTA

The Federal Unemployment Tax Act, a United States federal law that funds state workforce agencies and unemployment insurance for workers who have lost their jobs.

Workers' Compensation

Insurance provided by employers covering medical expenses and lost wages for employees injured at work or who contract a work-related illness.

Federal Income

Earnings subject to federal income tax, including wages, salaries, and other forms of compensation, as regulated by the federal government.