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:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them a stake in the company's assets and profits.

Primary Management

The core activities and responsibilities of managers that are fundamental to the successful operation of an organization.

Automobile Company

A business entity that specializes in manufacturing and selling vehicles.