Multiple Choice
If people have rational expectations,but they are not always correct in their expectations,the expectation of a higher inflation rate will cause:
A) the short-run Phillips curve to become vertical.
B) the short-run Phillips curve to shift leftward.
C) a movement up along a short-run Phillips curve.
D) the short-run Phillips curve to shift rightward.
Correct Answer:

Verified
Correct Answer:
Verified
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