Economies with higher expected inflation rates have short-run Phillips curves that are
A)always vertical.
B)closer to being horizontal.
C)further to the left.
D)upward sloping.
E)further to the right.

Question

Quizplus · Accepted Answer

Higher expected inflation shifts the short-run Phillips curve to the right, indicating a higher rate of inflation for any given level of unemployment.

Economies with Higher Expected Inflation Rates Have Short-Run Phillips Curves