For a given level of inflation expectations, if the central bank increases the money supply growth rate, then in the short run
A)the economy moves down along the short-run Phillips curve.
B)the economy moves up along the short-run Phillips curve.
C)the Phillips curve shifts right.
D)the Phillips curve shifts left.

Question

Quizplus · Accepted Answer

In the short run, increasing the money supply growth rate typically leads to higher inflation and lower unemployment, moving the economy up along the short-run Phillips curve.

For a Given Level of Inflation Expectations, If the Central