A decrease in the unemployment rate that is accompanied by an decrease in the inflation rate is represented by a(n)________ the Phillips curve.
A) movement down
B) movement up
C) upward shift of
D) downward shift of

Question

Quizplus · Accepted Answer

A decrease in both unemployment and inflation rates indicates a downward shift of the Phillips curve, suggesting a change in the relationship between unemployment and inflation.

A Decrease in the Unemployment Rate That Is Accompanied by an Decrease