Suppose Expected Inflation and Actual Inflation Are Both Low, and Unemployment

question 132

Multiple Choice

Suppose expected inflation and actual inflation are both low, and unemployment is at its natural rate. If the Fed then pursues an expansionary monetary policy, which of the following results would be expected in the short run?

• A)The short-run Phillips curve would shift to the left.
• B)The short-run Phillips curve would shift to the right.
• C)The economy would move up and to the left along a given short-run Phillips curve.
• D)The economy would move down and to the right along a given short-run Phillips curve.

---

Definitions:

Pretexting

A deceptive practice where an individual lies about their identity or intentions to obtain personal or sensitive information from another.

Fraudulent Means

Actions or practices intended to deceive or trick others, usually for personal gain or to fulfill some other illicit objective.

Phone Use

The usage of a mobile or landline telephone for purposes such as communication, internet browsing, or application use.

Burden Of Proof

The obligation in a legal dispute to prove one's allegations or claims; it determines who must prove the point at issue.