Bonds without a maturity date are called

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.

If the actual inflation rate exceeds the expected inflation rate, then: a. the economy is operating along the long-run Phillips curve

b. unemployment exceeds the natural rate. c. maintaining the existing unemployment rate will require increasing inflation in the long run. d. the actual rate will tend to fall toward the expected rate. e. unemployment will tend to decrease in the long run.