On the short-run Phillips curve, the expectations of inflation:
A)are rising.
B)are falling.
C)remain constant.
D)are rising or falling depending on how the economy is performing.

Question

Quizplus · Accepted Answer

In the short-run Phillips curve, the expectations of inflation are assumed to remain constant. The curve illustrates the inverse relationship between unemployment and inflation with the expectation of inflation being a constant factor in the short term.

On the Short-Run Phillips Curve, the Expectations of Inflation