If workers and firms raise their inflation expectations,
A) unemployment will fall.
B) actual inflation will fall to match expected inflation.
C) the short-run Phillips curve will be vertical.
D) the short-run Phillips curve will shift upward.
E) the long-run Phillips curve will shift to the left.
Correct Answer:
Verified
Q100: Figure 13.2 Q101: The natural rate of unemployment will not Q103: In the 1960s, many economists and policy Q106: Ceteris paribus, an increase in the current Q107: A "long-run exploitable Phillips curve" refers to Q115: The expansionary monetary and fiscal policies of Q118: An increase in frictional unemployment will Q122: If inflationary expectations on the part of Q127: A decrease in the level of cyclical Q131: If unemployment persists for a long period
A)shift the
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