Exhibit: Short-Run Phillips Curve As the short-run Phillips curve shifts from A to B to C to D:
A)the expected rate of inflation is unchanged at every level of unemployment.
B)there is a lower-than-expected rate of inflation at every level of unemployment.
C)there is a higher-than-expected rate of inflation for every level of unemployment.
D)the natural rate of unemployment increases.

Question

Exhibit: Short-Run Phillips Curve  As the short-run Phillips curve shifts from A to B to C to D:
A)the expected rate of inflation is unchanged at every level of unemployment. 
B)there is a lower-than-expected rate of inflation at every level of unemployment. 
C)there is a higher-than-expected rate of inflation for every level of unemployment. 
D)the natural rate of unemployment increases.

Quizplus · Accepted Answer

The Answer of Exhibit: Short-Run Phillips Curve  As the short-run Phillips curve shifts from A to B to C to D:
A)the expected rate of inflation is unchanged at every level of unemployment. 
B)there is a lower-than-expected rate of inflation at every level of unemployment. 
C)there is a higher-than-expected rate of inflation for every level of unemployment. 
D)the natural rate of unemployment increases.

Exhibit: Short-Run Phillips Curve as the Short-Run Phillips Curve