The Swedish central bank, Swede Bank, currently has an inflation rate target of 2%. Inflation in the past few years has been lower than this (and is currently below this), so the population is expecting the Swede Bank to undertake policies to boost inflation. These expectations will cause the SRAS to (shift upward, shift downward, remain unchanged) (it is a movement along the curve change ambiguously), the LRAS to (shift upward, shift downward, remain unchanged (it is a movement along the curve) change ambiguously), the short-run Phillips curve to (shift upward, shift downward, remain unchanged) (it is a movement along the curve) change ambiguously), and the long-run Phillips curve to (shift upward ,shift downward, remain unchanged (it is a movement along the curve)change ambiguously).
Please choose between the options for each sentence correctly!!
The Swedish central bank, Swede Bank, currently has an inflation rate target of 2%. Inflation in the past few years has been lower than this (and is currently below this), so the population is expecting the Swede Bank to undertake policies to boost inflation.
These expectations will cause the SRAS to (shift upward, shift downward, remain unchanged) (it is a movement along the curve change ambiguously), the LRAS to (shift upward, shift downward, remain unchanged (it is a movement along the curve) change ambiguously), the short-run
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