If workers and firms lower their inflation expectations
A) actual inflation will fall to match expected inflation.
B) unemployment will rise.
C) the short-run Phillips curve will be vertical.
D) the short-run Phillips curve will shift downward.
D
You might also like to view...
Refer to Table 9-11. If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded, how many hats will Denmark gain compared to the "without trade" numbers?
A) -150 B) 0 C) 150 D) 1,050
Which of the following is true? a. In 2007, the default rate on fixed rate mortgages was lower than that on ARMs
b. From 2006-2008, housing construction decreased in the U.S. c. Zero-down mortgages decreased the incentive for homeowners to prevent defaulting on their homes. d. all of the above
The descriptions give the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment.1. Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month.2. George works in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in several months when national economic conditions improve.3. Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the federal government cut defense spending. She has been looking for similar work for a year, but no company seems interested in her aircraft design skills.4. Ricardo lost his job last year when his company downsized and laid off
middle-level managers. He tried to find another job for a year but was unsuccessful and quit looking for work.Refer to the above information. Which individual is frictionally unemployed? A. 1 B. 2 C. 3 D. 4
Suppose there are only two goods (Good A and Good B) and the average person buys 4 of Good A in a year and 3 of Good B. If, in the base year, the Price of Good A is $5 and the Price of Good B is $10, and in the next year the Price of Good A is $6 and the Price of Good B is $9, the inflation that occurred in the second year is
A. 51%. B. 1%. C. 100%. D. 2%.