An increase in the expected inflation rate, other things remaining the same?

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02-08-2022
Business

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An increase in the expected inflation rate, other things remaining the same?

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anshumanaryan799 anshumanaryan799 · Answer 1 · 2022-08-15T04:03:27-04:00

An increase in the expected inflation rate shifts the short-run Phillips curve upward.

Inflation is the rate of increase in prices over a period of time. Inflation is usually a broad measure, such as a general rise in prices or an increase in the cost of living in a country.

US annual inflation accelerated to 9.1% in June 2022, from 8.6% in May to his highest since November 1981, beating market expectations of 8.8%.

Although high inflation is generally viewed as detrimental, some economists believe low inflation could boost economic growth. The opposite of inflation is deflation, where prices tend to fall. The Federal Reserve is targeting 2% inflation based on the Consumer Price Index (CPI).

Learn more about the inflation rate here: https://brainly.com/question/1100560

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