If the Fed Announced a Policy to Reduce Inflation and People

question 45

Multiple Choice

If the Fed announced a policy to reduce inflation and people found it credible,the short-run Phillips curve would shift

• A)right and the sacrifice ratio would fall.
• B)right and the sacrifice ratio would rise.
• C)left and the sacrifice ratio would fall.
• D)left and the sacrifice ratio would rise.

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Definitions:

Human Capital

The collective skills, knowledge, and expertise that employees contribute to an organization's value.

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Extrinsic Benefits

Advantages or rewards received from an activity that are external to the activity itself, such as money, grades, or recognition.

Self-Efficacy

An individual's belief in their own capability to execute behaviors necessary to produce specific performance attainments.