The short-run Philips curve shifts downwards when there is a rise in inﬂationary expectations.

Name: The short-run Philips curve shifts downwards when there is a rise in inﬂationary expectations.
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The short-run Phillips curve shifts upwards (to the right) when there is a rise in inflationary expectations, as workers and firms adjust their expectations upwards, leading to higher wage demands and price settings.

The Short-Run Philips Curve Shifts Downwards When There Is a Rise