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Refer to the Graph Shown

Question 39

Multiple Choice

Refer to the graph shown. If expected inflation increases from 0 percent to 6 percent, the: Refer to the graph shown. If expected inflation increases from 0 percent to 6 percent, the: A) short-run Phillips curve will shift from PC<sub>2</sub> to PC<sub>1</sub>. B) short-run Phillips curve will shift from PC<sub>1</sub> to PC<sub>2</sub>.<sub> </sub> C) economy will move from point C to point A. D) economy will move from point B to point C.


A) short-run Phillips curve will shift from PC2 to PC1.
B) short-run Phillips curve will shift from PC1 to PC2.
C) economy will move from point C to point A.
D) economy will move from point B to point C.

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