An increase in the expected inflation rate will:
a. shift the short-run Phillips curve upward and to the right
b. shift the short-run Phillips curve downward and to the left.
c. not shift the short-run Phillips curve unless the unemployment rate changes.
d. cause the unemployment rate associated with each inflation rate to decrease.
e. tend to increase production unless the actual inflation rate also increases.
a
Economics
You might also like to view...
The Fed first announced an inflation target of 2% in
A) 1979. B) 2005. C) 2012. D) 2015.
Economics
If there are no unintended changes in inventories, the economy is at its equilibrium level of real gross domestic product (GDP) demanded
a. True b. False Indicate whether the statement is true or false
Economics