If Inflation Expectations Rise, the Short-Run Phillips Curve Shifts

question 46

Multiple Choice

If inflation expectations rise, the short-run Phillips curve shifts

• A)right, so that at any inflation rate unemployment is higher in the short run than before.
• B)left, so that at any inflation rate unemployment is higher in the short run than before.
• C)right, so that at any inflation rate unemployment is lower in the short run than before.
• D)left, so that at any inflation rate unemployment is lower in the short run than before.

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Definitions:

Long-Term Retention

The ability to hold onto information or skills for extended periods, often many years.

Working Memory

An intellectual mechanism with finite space, dedicated to briefly storing data for further manipulation.

Echoic Memory

A subtype of sensory memory that retains auditory information for a short period after the original sound is heard.

Fleeting Memory

A brief or rapidly fading memory, often unable to be recalled after a short period of time.