When the natural unemployment rate increases,
A) the long-run Phillips curve shifts rightward and the short-run Phillips curve shifts leftward.
B) the long-run Phillips curve shifts leftward and the short-run Phillips curve shifts rightward.
C) there are no shifts of either the long-run Phillips curve or the short-run Phillips curve.
D) both the long-run Phillips curve and the short-run Phillips curve shift leftward.
E) both the long-run Phillips curve and the short-run Phillips curve shift rightward.
Correct Answer:
Verified
Q93: The long-run Phillips curve is a
A)horizontal line
Q94: Q95: If the Fed tries to lower the Q96: The short-run Phillips curve shows the relationship Q97: Moving upward along the aggregate supply curve, Q99: The long-run Phillips curve represents the relationship
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