Multiple Choice
An increase in expected inflation
A) shifts the short-run Phillips curve downward and the unemployment inflation trade-off is less favourable.
B) shifts the short-run Phillips curve upward and the unemployment inflation trade-off is more favourable.
C) shifts the short-run Phillips curve downward and the unemployment inflation trade-off is more favourable.
D) shifts the short-run Phillips curve upward and the unemployment inflation trade-off is less favourable.
Correct Answer:
Verified
Correct Answer:
Verified
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