If Workers and Firms Lower Their Inflation Expectations

question 99

Multiple Choice

If workers and firms lower their inflation expectations

• A)unemployment will rise.
• 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 downward.

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Definitions:

Generalized Anxiety Disorder

Anxiety not focused on any single target.

Obsessive-Compulsive Disorder

A mental disorder characterized by persistent unwanted thoughts (obsessions) and repetitive behaviors (compulsions) that an individual feels the urge to perform.

Threats Of War

The potential or perceived risk of military conflict between entities, which can impact the psychological and social well-being of individuals, especially in affected regions.

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Mood disorder characterized by such symptoms as a prolonged sense of friendlessness, inability to have fun or concentrate, fatigue, extreme activity or apathy, feelings of worthlessness, weight change, physical complaints, and thoughts of death or suicide.