Solved

If People Have Rational Expectations,but They Are Not Always Correct

Question 11

Multiple Choice

If people have rational expectations,but they are not always correct in their expectations,the expectation of a higher inflation rate will cause:


A) the short-run Phillips curve to become vertical.
B) the short-run Phillips curve to shift leftward.
C) a movement up along a short-run Phillips curve.
D) the short-run Phillips curve to shift rightward.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions