An increase in expected inflation will A) decrease the natural ...

[kodithompson]

An increase in expected inflation will
 
  A) decrease the natural rate of unemployment. B) increase real wages.
  C) shift the long-run Phillips curve to the right. D) None of the above is correct.

Question 2

Refer to Figure 15-8. In the figure above, if the economy is at point A, the appropriate monetary policy by the Federal Reserve would be to
 
  A) lower interest rates. B) raise income taxes.
  C) raise interest rates. D) lower income taxes.

[Kedrick2014]

Answer to Question 1

D

Answer to Question 2

C

[kodithompson]

Gracias!

[abro1885]

Thanks for the timely response, appreciate it