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If the Expected Inflation Rate Rises, Then the Short-Run Phillips

Question 43

Multiple Choice

If the expected inflation rate rises, then the short-run Phillips curve ________ and the long-run Phillips curve ________.


A) shifts; shifts
B) shifts; does not shift
C) does not shift; shifts
D) does not shift; does not shift
E) might shift; shifts only if the short-run Phillips curve shifts

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