LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory With financial apps providing real-time inflation data, consumers and firms adjust their price expectations quickly. How does this affect the inflation–unemployment relationship?

Question

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory With financial apps providing real-time inflation data, consumers and firms adjust their price expectations quickly. How does this affect the inflation–unemployment relationship?

Answer

Greater information transparency eliminates unemployment fluctuations.

Answer

Faster information diffusion makes inflation expectations adjust rapidly, flattening the short-run Phillips Curve.

Answer

Inflation expectations become more adaptive, steepening the Phillips Curve and amplifying trade-offs.

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LG 1. Knowledge Comprehension LO 1.1. Generate knowledge of core concept and...

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