$A) a movement from x _ { 1 } to x _ { 2 } in the short run, and the unemployment rate decreases, followed by a shift from x _ { 2 } to y _ { 1 } as nominal wages rise in the long run. B) a movement from x _ { 1 } to x _ { 3 } in the short run, and the unemployment rate decreases, followed by a shift from x _ { 3 } to x _ { 1 } as output rises in the long run. C) \text { a movement from } x _ { 1 } \text { to } y _ { 1 } \text { in the short run and back to } x _ { 1 } \text { in the long run. } D) \text { no change in the short run, but a shift from } x _ { 1 } \text { to } y _ { 1 } \text { in the long run. }$
A) a movement from

x _ { 1 }

x _ { 2 }

in the short run, and the unemployment rate decreases, followed by a shift from

x _ { 2 }

y _ { 1 }

as nominal wages rise in the long run.
B) a movement from

x _ { 1 }

x _ { 3 }

in the short run, and the unemployment rate decreases, followed by a shift from

x _ { 3 }

x _ { 1 }

as output rises in the long run.
C)

\text { a movement from } x _ { 1 } \text { to } y _ { 1 } \text { in the short run and back to } x _ { 1 } \text { in the long run. }

\text { no change in the short run, but a shift from } x _ { 1 } \text { to } y _ { 1 } \text { in the long run. }

Inﬂation in the U.S. Economy Tends to Be

Multiple Choice

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