What would shift the long-run Phillips curve to the right?
A) an increase in the money supply
B) a decrease in government spending
C) an increase in employment insurance
D) a decrease in the unemployment rate

Question

Quizplus · Accepted Answer

An increase in employment insurance would provide more support for workers who are unemployed, reducing the pressure on them to accept lower wages. This would shift the long-run Phillips curve to the right, as there would be less downward pressure on wages and prices. Increases in the money supply, decreases in government spending, and decreases in the unemployment rate would all be expected to shift the long-run Phillips curve to the left, as they would increase the pressure on wages and prices.

What Would Shift the Long-Run Phillips Curve to the Right