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Which of the Following Leads to a Downward Shift in the Short-Run

Question 253

Multiple Choice

Which of the following leads to a downward shift in the short-run Phillips curve?


A) People expected inflation to be 5 percent last year and now expect inflation to be 3 percent this year.
B) People expect the unemployment rate to increase.
C) The long-run Phillips curve shifts rightward.
D) Unexpected inflation increases.

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