In the development of the IS curve, one variable that turns from exogenous to endogenous is

How does the relationship between housing prices and rental rates provide evidence for or against the existence of a housing bubble?

What will be an ideal response?

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.