An Increase in the Expected Inflation Rate Will

Multiple Choice

An increase in the expected inflation rate will:

A) shift the short-run Phillips curve upward and to the right.
B) shift the short-run Phillips curve downward and to the left.
C) not shift the short-run Phillips curve unless the unemployment rate changes.
D) cause the unemployment rate associated with each inflation rate to decrease.
E) tend to increase production unless the actual inflation rate also increases.