If Unemployment Is Below Its Natural Rate,what Happens to Move

question 26

Multiple Choice

If unemployment is below 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:

Voluntary Intoxication

A legal defense claiming that a person's ability to understand the wrongfulness of his or her actions was impaired due to intentional consumption of alcohol or drugs.

Premeditation

The action of planning or plotting in advance, especially with intent to commit a specific act such as a crime.

Criminal Liability

The legal responsibility for a crime, involving the imposition of penalties or other legal consequences on a person who commits a criminal act.

Mens Rea

A legal principle referring to the criminal intent or state of mind of an individual at the time of an offense.