If Unemployment Is Above Its Natural Rate, What Happens to Move

question 179

Multiple Choice

If unemployment is above its natural rate, what happens to move the economy to long-run equilibrium?

• A)Inflation expectations rise, which shifts the short-run Phillips curve to the right.
• B)Inflation expectations rise, which shifts the short-run Phillips curve to the left.
• C)Inflation expectations fall, which shifts the short-run Phillips curve to the right.
• D)Inflation expectations fall, which shifts the short-run Phillips curve to the left.

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Definitions:

Authorities

Individuals or groups that hold power within a social structure, responsible for the enforcement of laws, rules, and regulations, and maintaining social order.

Significant Activity

Refers to actions or pursuits that have a notable impact or importance in a certain context, such as personal development, societal progress, or environmental sustainability.

Differential Association Theory

A sociological theory that attributes the development of criminal behavior to interaction with others who already engage in crime.

Deviance

Behaviors or actions that violate social norms, including formally-enacted rules as well as informal understandings of acceptable conduct.