If workers and firms raise their inflation expectations A) ...

[dejastew]

If workers and firms raise their inflation expectations
 
  A) unemployment will fall.
  B) the short-run Phillips curve will be vertical.
  C) actual inflation will fall to match expected inflation.
  D) the short-run Phillips curve will shift upward.

Question 2

Financial markets and financial intermediaries comprise the financial system.
 
  Indicate whether the statement is true or false

[LP]

Answer to Question 1

D

Answer to Question 2

TRUE

[dejastew]

TYSM

[kilada]

Excellent