When the expected inflation rate ________, the short-run Phillips ...

[Yolanda]

When the expected inflation rate ________, the short-run Phillips curve ________.
 
  A) rises; shifts downward
  B) falls; shifts upward
  C) rises; shifts upward
  D) falls; does not shift
  E) rises; might shift upward or downward depending on how the long-run Phillips curve shifts

Question 2

Refer to Figure 7.1. If Angus chooses to earn the most money, he will receive a daily payoff of
 
  A) 100.
  B) 350.
  C) 550.
  D) 700.

[zogaridan]

Answer to Question 1

C

Answer to Question 2

B

[Yolanda]

TYSM

[matt95]

Great answer, keep it coming