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-Refer to Exhibit 16-1

Question 35

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-Refer to Exhibit 16-1.Suppose the economy is currently at point B on the short-run Phillips curve,SRPC<sub>1</sub>.What could get the economy to move to point C on SRPC<sub>2</sub>? A) The realization on the part of workers that their currently held expected inflation rate is too high; they revise it upward,thus shifting the short-run aggregate supply curve rightward. B) The realization on the part of workers that their currently held expected inflation rate is too high; they revise it downward,thus shifting the short-run aggregate supply curve rightward. C) The realization on the part of workers that their currently held expected inflation rate is too low; they revise it upward,thus shifting the short-run aggregate supply curve leftward. D) The realization on the part of workers that their currently held expected inflation rate is too low; they revise it downward,thus shifting the short-run aggregate supply curve rightward.
-Refer to Exhibit 16-1.Suppose the economy is currently at point B on the short-run Phillips curve,SRPC1.What could get the economy to move to point C on SRPC2?


A) The realization on the part of workers that their currently held expected inflation rate is too high; they revise it upward,thus shifting the short-run aggregate supply curve rightward.
B) The realization on the part of workers that their currently held expected inflation rate is too high; they revise it downward,thus shifting the short-run aggregate supply curve rightward.
C) The realization on the part of workers that their currently held expected inflation rate is too low; they revise it upward,thus shifting the short-run aggregate supply curve leftward.
D) The realization on the part of workers that their currently held expected inflation rate is too low; they revise it downward,thus shifting the short-run aggregate supply curve rightward.

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