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:

Social Mobility

The relocation of single people, families, or groups across different levels within a social hierarchy or stratification system.

Social Stratification

The arrangement of individuals in a society into hierarchical levels based on factors like wealth, power, and social status.

Global Middle Class

A socioeconomic group that is characterized by stable income, education, and employment levels, and is growing in numbers worldwide, particularly in developing nations.

Occupational Prestige

The collective respect, admiration, or perceived value that society allocates to various professions or occupations.