Author Question: When workers expect more inflation than actually occurs: a. the Phillips curve becomes vertical. ... (Read 45 times)

codyclark · **on:** Jun 30, 2018

When workers expect more inflation than actually occurs:
a. the Phillips curve becomes vertical.
b. the long-run Phillips curve shifts to the right.
c. the short-run Phillips curve shifts to the left.
d. there will be a movement down the short-run Phillips curve.
e. there will be a movement up the short-run Phillips curve.

Question 2

Explain the impact of: 1 . A rent ceiling set below the equilibrium price. 2 . A price floor set above the equilibrium price.

tjayeee · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

d

Answer to Question 2

A rent ceiling set below the equilibrium price results in a persistent shortage. A price floor set above the equilibrium price will result in a surplus.