Multiple Choice
If the public correctly perceives that the central bank will reduce inflation,then
A) the short-run Phillips curve shifts right,and unemployment will rise by more than otherwise.
B) the short-run Phillips curve shifts right,and unemployment will rise by less than otherwise.
C) the short-run Phillips curve shifts left,and unemployment will rise by more than otherwise.
D) the short-run Phillips curve shifts left,and unemployment will rise by less than otherwise.
Correct Answer:
Verified
Correct Answer:
Verified
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