Asked by Fantasia Jessie on May 03, 2024
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If expected inflation increases, the short-run Phillips curve will shift to the left so that inflation will be higher at any given unemployment rate.
Expected Inflation
The anticipated rate at which the general level of prices for goods and services will rise over a period of time, affecting the purchasing power of a currency.
Short-Run Phillips Curve
A graphical representation showing the short-term trade-off between inflation and unemployment rates.
Inflation
The rate of increase in the collective pricing for goods and services, lessening consumer purchase strength.
- Familiarize oneself with the idea of the Phillips curve over short and extended periods.
- Explore the impact of anticipated inflation on economic policy effectiveness.
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Learning Objectives
- Familiarize oneself with the idea of the Phillips curve over short and extended periods.
- Explore the impact of anticipated inflation on economic policy effectiveness.
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