Multiple Choice
The figure above shows some Phillips curves for an economy.
-In the figure above, the shift from the short-run Phillips curve SRPC₀ and the long-run Phillips curve LRPC₀ to the short-run Phillips curve SRPC₁ and the long-run Phillips curve LRPC₁ is the result of ________ in the expected inflation rate and ________ in the natural unemployment rate.
A) an increase; an increase
B) a decrease; a decrease
C) no change; an increase
D) an increase; no change
E) a decrease; no change
Correct Answer:
Verified
Correct Answer:
Verified
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