If workers expect a lower rate of inflation, the short-run Phillips curve will:
A) remain constant, but there will be a movement down the curve.
B) be unaffected.
C) shift up.
D) shift down.

Question

Quizplus · Accepted Answer

If workers expect a lower rate of inflation, they will demand lower wages, which will reduce the cost of production and shift the short-run Phillips curve down.

If Workers Expect a Lower Rate of Inflation, the Short-Run