If Inflation Expectations Decline,then the Short-Run Phillips Curve Shifts

question 153

Multiple Choice

If inflation expectations decline,then the short-run Phillips curve shifts

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

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Definitions:

Docile

Easily taught, led, or managed; compliant and submissive.

Dependent

Describes an individual who relies on another for support, often related to financial, emotional, or physical needs, such as a child to a caregiver.

Passive

A behavior characterized by inactivity or a lack of response to external stimuli or situations.

Autonomy

The capacity to make an informed, uncoerced decision independently.