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If the Public Correctly Perceives That the Central Bank Will

Question 34

Multiple Choice

If the public correctly perceives that the central bank will reduce inflation,then


A) the short-run Phillips curve shifts right,and the sacrifice ratio will be higher.
B) the short-run Phillips curve shifts right,and the sacrifice ratio will be lower.
C) the short-run Phillips curve shifts left,and the sacrifice ratio will be higher.
D) the short-run Phillips curve shifts left,and the sacrifice ratio will be lower.

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