If Workers and Firms Raise Their Inflation Expectations

question 103

Multiple Choice

If workers and firms raise their inflation expectations

• A)unemployment will fall.
• B)actual inflation will fall to match expected inflation.
• C)the short-run Phillips curve will be vertical.
• D)the short-run Phillips curve will shift upward.

---

Definitions:

Preparing Environment

The process of arranging or modifying a setting to make it suitable for specific tasks or to enhance its functionality.

Physical Setting

The natural or built environmental context in which events occur, influencing the behavior and interactions of its occupants.

Financial Support

Monetary assistance provided to individuals, organizations, or governments to help them meet their financial needs or goals.

Closed Membership

Closed Membership implies a restricted entry system where members are admitted based on certain criteria, and new entries are limited or require special admission processes.