If Aggregate Demand Decreases and Expectations Regarding Inflation Remain Constant

question 240

Multiple Choice

If aggregate demand decreases and expectations regarding inflation remain constant

• A) the economy moves along the short-run Phillips curve.
• B) the short-run Phillips curve shifts to the right.
• C) the short-run Phillips curve shifts to the left.
• D) the long-run Phillips curve shifts to the right.

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Definitions:

Compounded Monthly

Interest calculated on the principal sum and also on the accumulated interest of previous periods of a deposit or loan, compounded every month.

Equal Payments

Payments that are the same in amount, typically referring to installments paid over a certain period of time.

Outstanding Balance

the amount of money that is still owed or remains unpaid on a loan, credit card, or another financial obligation.

Combined Equivalent

A combined or total equivalent that incorporates various elements or aspects to express a singular value or concept.