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If the Fed Makes a Credible Announcement That Its Policy

Question 25

Multiple Choice

If the Fed makes a credible announcement that its policy aims to reduce inflation, the


A) long-run Phillips curve shifts downward.
B) short-run Phillips curve shifts downward.
C) long-run Phillips curve shifts upward.
D) short-run Phillips curve shifts upward.
E) long-run Phillips curve shifts rightward.

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