As expected inflation decreases,the short-run Phillips curve
A) shifts to the left.
B) becomes flatter.
C) becomes steeper.
D) stays the same.
E) shifts to the right.

Question

Quizplus · Accepted Answer

As expected inflation decreases, the short-run Phillips curve shifts to the left because the lower expected inflation leads to a lower level of inflation for any given level of unemployment.

As Expected Inflation Decreases,the Short-Run Phillips Curve