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:

A) the expected rate of inflation is unchanged at every level of unemployment.
B) there is a lower-than-expected rate of inflation at every level of unemployment.
C) there is a higher-than-expected rate of inflation for every level of unemployment.
D) the natural rate of unemployment increases.