If People Believe That the Central Bank Is Going to Reduce

question 23

Multiple Choice

If people believe that the central bank is going to reduce inflation,then

• A)the short-run Phillips curve shifts right and the sacrifice ratio will rise.
• B)the short-run Phillips curve shifts right and the sacrifice ratio will fall.
• C)the short-run Phillips curve shifts left and the sacrifice ratio will rise.
• D)the short-run Phillips curve shifts left and the sacrifice ratio will fall.

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Definitions:

Second Stage

Refers to a subsequent phase or step in a process or sequence, often implying development or progression from an initial stage.

Dilations

The process of expansion or enlargement in geometry, or the widening of blood vessels or pupils in biological contexts.

Actual Birth

The occurrence or process of being born.

Contractions

The tightening and shortening of muscles, often referring to those of the uterus during childbirth.