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

Multiple Choice

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

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