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If the Inflation Rate Is Decreasing While Unemployment Is Increasing

Question 144

Multiple Choice

If the inflation rate is decreasing while unemployment is increasing:


A) ​the short-run Phillips curve must have shifted right.
B) ​the short-run Phillips curve must have shifted left.
C) ​it must have involved a movement along the short-run Phillips curve
D) ​it would be inconsistent with any possible Phillips curve scenario.

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