If People Believe That the Central Bank Is Going to Reduce

Multiple Choice

If people believe that the central bank is going to reduce inflation

A) the short-run Phillips curve shifts right and the sacrifice ratio will rise.
B) the short-run Phillips curve shifts right and the sacrifice ratio will fall.
C) the short-run Phillips curve shifts left and the sacrifice ratio will rise.
D) the short-run Phillips curve shifts left and the sacrifice ratio will fall.