When Expectations of Inflation Are Revised Downward, the Short-Run Phillips

question 148

Multiple Choice

When expectations of inflation are revised downward, the short-run Phillips curve:

• A)​shifts rightward.
• B)​becomes steeper.
• C)​shifts leftward.
• D)​becomes flatter.

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Definitions:

Price Increase

A rise in the cost of goods or services.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price level.

Relatively Inelastic

A situation where the demand for a product does not change significantly with a change in the price.

GSU

An acronym that can refer to Georgia State University or other entities, depending on the context.