If the Fed makes a credible announcement that its policy aims to reduce inflation, the
A) long-run Phillips curve shifts downward.
B) short-run Phillips curve shifts downward.
C) long-run Phillips curve shifts upward.
D) short-run Phillips curve shifts upward.
E) long-run Phillips curve shifts rightward.
Correct Answer:
Verified
Q139: The expected inflation rate is the
A) inflation
Q140: The natural unemployment rate
A) increases when job
Q141: In the short run, a surprise reduction
Q142: In order to reduce the expected inflation
Q143: If the Fed wants to lower everyone's
Q145: A credible announced inflation reduction results in
Q146: If the Fed makes a credible announcement
Q147: Because money growth is a major component
Q148: If the economy begins at its natural
Q149: A surprise reduction of inflation will come
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