Ceteris Paribus,an Increase in the Current or Actual Rate of Inflation

question 92

Multiple Choice

Ceteris paribus,an increase in the current or actual rate of inflation will cause

• A)the short-run Phillips curve to shift upward.
• B)the unemployment rate to decrease (a movement along the short-run Phillips curve).
• C)the long-run Phillips curve to shift leftward.
• D)expectations of future inflation rates to be revised downward.

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Definitions:

Utility Schedule

A table or graph that shows the satisfaction or utility a consumer derives from consuming different quantities of a good or service.

Total Utility

The overall satisfaction or enjoyment a person gets from consuming a certain quantity of goods or services.

Marginal Utility

The boost in contentment or usefulness someone achieves from consuming an additional item of a good or service.

Consumer Surplus

The variance between the price consumers intend to pay for a good or service and the price they actually incur.