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

question 37

Multiple Choice

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

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

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Definitions:

Punishment

A method used to reduce the likelihood of a behavior's recurrence by applying an adverse stimulus or removing a positive stimulus following the behavior.

Punishment

A consequence designed to reduce or eliminate a behavior through negative or unpleasant outcomes.

Operant Technique

A method in behavioral psychology involving reinforcements or punishments to influence the frequency of a behavior.

Positive Reinforcement

The addition of a rewarding stimulus following a desired behavior, increasing the likelihood of its future occurrence.