Multiple Choice
Use the table below to answer the following questions.
Table 28.4.2
-The economy's natural unemployment rate is 4 percent. Table 28.4.2 gives some points on the economy's short-run Phillips curve. If the expected inflation rate rises to 8 percent a year,
A) the long-run Phillips curve shifts leftward.
B) the short-run Phillips curve shifts upward.
C) the short-run Phillips curve shifts downward.
D) Both A and B are correct.
E) Both A and C are correct.
Correct Answer:

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Correct Answer:
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