Both the long-run and the short-run Phillips curves shift if
A)the expected inflation rate changes.
B)expected real GDP changes.
C)the natural unemployment rate changes.
D)the expected unemployment rate changes.
E)the actual inflation rate changes.

Question

Quizplus · Accepted Answer

The natural unemployment rate is a key determinant of both the long-run and short-run Phillips curves. Changes in the natural rate shift both curves.

Both the Long-Run and the Short-Run Phillips Curves Shift If