Question 38 (1 point) The short-run Phillips curve will shift if there is A) a c

Question

Question 38 (1 point) The short-run Phillips curve will shift if there is A) a change in inflation expectations. B) an increase in inflation that is unanticipated. O C) a decrease in inflation that is unanticipated. D) an increase in the unemployment rate. Save Question 39 (1 point) When individuals use all available information about an economic variable to make a decision, expectations are O A) overestimates of reality. O B) rational. O c) accurate. D) underestimates of reality. Save Question 40 (1 noint)

Explanation / Answer

1.Ans: A) A change in inflation expectations. (It causes a rightward shift of Philips Curve).

2.Ans: Rational (According to Rational expectations theory).

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