Figure 28-4 -Refer to Figure 28-4. Consider the Shift in the Short-Run

question 176

Multiple Choice

Figure 28-4
-Refer to Figure 28-4. Consider the shift in the short-run Phillips curves shown in the above graph. This shift may be explained by

• A) an increase in the natural rate of unemployment from 5.0 to 6.2 percent.
• B) an increase in the expected rate of inflation from 4.0 to 5.5 percent.
• C) either an increase in the natural rate of unemployment from 5.0 to 6.2 percent or an increase in the expected rate of inflation from 4.0 to 5.5 percent.
• D) None of the above is correct.

---

Definitions:

Customer Preferences

Describes the likes, dislikes, desires, and needs that a customer exhibits when choosing a product or service.

International Fast-Food

Fast-food chains or franchises operating in multiple countries, offering quick service meals with a consistent menu globally.

Marketing Mix

The set of tactical marketing tools—Product, Price, Place, Promotion—that a company uses to produce a desired response in a target market.

Health Drink

A beverage designed to provide health benefits, including vitamins and minerals, to the consumer beyond a simple nutritional value.