Exhibit: Short-Run Phillips Curve as the Short-Run Phillips Curve

Multiple Choice

Exhibit: Short-Run Phillips Curve As the short-run Phillips curve shifts from A to B to C to D, policymakers face:

A) the same tradeoff between inflation and unemployment.
B) a lower rate of inflation for any level of unemployment.
C) a higher rate of inflation for any level of unemployment.
D) higher than expected inflation rates and lower unemployment rates.