If the expected rate of inflation rises, then the short-run Phillips Curve will
A)shift to the right.
B)shift to the left.
C)become vertical.
D)become flat.

Name: If the expected rate of inflation rises, then the short-run Phillips Curve will A)shift to the right. B)shift to the left. C)become vertical. D)become flat.
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Question

Quizplus · Accepted Answer

When the expected rate of inflation rises, the short-run Phillips Curve shifts to the right, indicating a higher rate of inflation for any given level of unemployment.

If the Expected Rate of Inflation Rises, Then the Short-Run