Multiple Choice
If a central bank announced that it was going to decrease inflation by 5%,people revised their inflation expectations downward by 4%,and the central bank only lowered inflation by 1%,the short run Phillips curve would shift
A) right and unemployment would rise.
B) right and unemployment would fall.
C) left and unemployment would rise.
D) left and unemployment would fall.
Correct Answer:
Verified
Correct Answer:
Verified
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