The Canadian Short-Run Phillips Curve ________ When the Expected Inflation

Multiple Choice

The Canadian short-run Phillips curve ________ when the expected inflation rate rises and ________ when the expected inflation rate falls. The Canadian short-run Phillips curve ________ when the natural unemployment rate increases and ________ when the natural unemployment rate decreases.

A) shifts downward; shifts upward; shifts rightward; shifts leftward
B) does not shift; does not shift; shifts rightward; shifts leftward
C) shifts upward; shifts downward; does not shift; does not shift
D) shifts upward; shifts downward; shifts rightward; shifts leftward
E) shifts upward; does not shift; shifts rightward; does not shift