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(Figure: Understanding Phillips Curves Shifts 2) What Would Cause an Outward

Question 236

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(Figure: Understanding Phillips Curves Shifts 2) What would cause an outward shift from Phillips curve PC1 to Phillips curve PC0? (Figure: Understanding Phillips Curves Shifts 2) What would cause an outward shift from Phillips curve PC<sub>1</sub> to Phillips curve PC<sub>0</sub>? A) a decrease in the expected inflation rate B) an increase in the expected inflation rate C) a decrease in the natural rate of unemployment D) an increase in the natural rate of unemployment


A) a decrease in the expected inflation rate
B) an increase in the expected inflation rate
C) a decrease in the natural rate of unemployment
D) an increase in the natural rate of unemployment

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