An increase in the misery index would definitely result from
A)A leftward shift of the Phillips curve.
B)A rightward shift of the Phillips curve.
C)A movement along the Phillips curve toward greater unemployment.

Question

Quizplus · Accepted Answer

The misery index is calculated by adding the unemployment rate and inflation rate. A rightward shift of the Phillips curve leads to an increase in the unemployment rate and inflation rate, which would result in an increase in the misery index. A leftward shift of the Phillips curve would lead to a decrease in the unemployment rate and inflation rate, and a movement along the curve toward greater unemployment would not necessarily indicate a change in the inflation rate.

An Increase in the Misery Index Would Definitely Result from