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When Workers Expect 6% Inflation, and the Inflation Rate Falls

Question 22

Multiple Choice
When workers expect 6% inflation, and the inflation rate falls to 3%,

When workers expect 6% inflation, and the inflation rate falls to 3%,


A) there is a movement to a lower Phillips curve.
B) there is a movement to a higher Phillips curve.
C) there is a movement along the Phillips curve to the right.
D) there is a movement along the Phillips curve to the left.
E) inventories will fall.

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