A rightward shift of the Phillips Curve suggests that
A)a higher rate of unemployment is associated with each level of inflation rate.
B)a lower rate of inflation is associated with each level of unemployment rate.
C)the aggregate supply curve has shifted to the right.
D)the aggregate demand curve has shifted to the left.

Question

Quizplus · Accepted Answer

A rightward shift of the Phillips Curve indicates that for each level of inflation, there is now a higher rate of unemployment, suggesting a worsening trade-off between inflation and unemployment.

A Rightward Shift of the Phillips Curve Suggests That