Refer to the graph shown. If expected inflation increases from 0 percent to 6 percent, the: A)short-run Phillips curve will shift from PC₂ to PC₁. B)short-run Phillips curve will shift from PC₁ to PC₂. C)economy will move from point C to point A. D)economy will move from point B to point C.

Question

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The Answer of Refer to the graph shown. If expected inflation increases from 0 percent to 6 percent, the: A)short-run Phillips curve will shift from PC₂ to PC₁. B)short-run Phillips curve will shift from PC₁ to PC₂. C)economy will move from point C to point A. D)economy will move from point B to point C.

Refer to the Graph Shown