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Use the Table Below to Answer the Following Questions

Question 66

Multiple Choice

Use the table below to answer the following questions.
Table 28.4.2
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.
-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.

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