A rightward shift of the traditional Phillips Curve would suggest that
A)the productivity of labor increased.
B)the rate of inflation is now higher at each rate of unemployment.
C)cost-push inflation decreased.
D)the rate of inflation is now lower at each rate of unemployment.

Question

Quizplus · Accepted Answer

A rightward shift of the Phillips Curve indicates that for each level of unemployment, the rate of inflation is higher, suggesting increased inflationary pressures in the economy.

A Rightward Shift of the Traditional Phillips Curve Would Suggest