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If the Natural Unemployment Rate Increases, the Long-Run Phillips Curve

Question 89

Multiple Choice

If the natural unemployment rate increases, the long-run Phillips curve ________, the short-run Phillips curve ________, and the expected inflation rate ________.


A) does not shift; does not shift; does not change
B) shifts rightward; shifts rightward; does not change
C) does not shift; shifts rightward; rises
D) shifts rightward; curve does not shift; falls
E) shifts rightward; shifts rightward; falls

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