If Inflation Expectations Decline,then the Short-Run Phillips Curve Shifts

question 153

Multiple Choice

If inflation expectations decline,then the short-run Phillips curve shifts

• A)left,so that at any inflation rate unemployment is lower in the short run than before.
• B)right,so that at any inflation rate unemployment is lower in the short run than before.
• C)right,so that at any inflation rate unemployment is higher in the short run than before.
• D)left,so that at any inflation rate unemployment is higher in the short run than before.

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Definitions:

Anvil

A heavy iron block used in metalworking as a surface upon which metal can be struck and shaped.

Stirrup

A small, U-shaped bone in the middle ear that plays a key role in transmitting sounds from the outer ear to the inner ear.

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is essential for hearing as it converts sound vibrations into neural signals.

Auditory Nerve

The nerve that carries signals from the inner ear to the brain, allowing us to process sounds.