Unemployment rates above the target rate of unemployment lead to:
A)an upward shift of the short-run Phillips curve.
B)a downward shift of the short-run Phillips curve.
C)a rightward shift of the long-run Phillips curve.
D)an leftward shift of the long-run Phillips curve.

Question

Quizplus · Accepted Answer

When unemployment rates are above the target rate, it typically leads to a downward shift of the short-run Phillips curve as inflationary pressures decrease.

Unemployment Rates Above the Target Rate of Unemployment Lead To