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When the Natural Unemployment Rate Increases, the Short-Run Phillips Curve

Question 37

Multiple Choice

When the natural unemployment rate increases, the short-run Phillips curve ________ and the long-run Phillips curve ________.


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

Correct Answer:

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