An increase in worker productivity would cause the Phillips curve to

Question

Quizplus · Accepted Answer

An increase in worker productivity would shift the Phillips curve to the left. This is because increased productivity leads to higher economic growth, which in turn leads to lower unemployment rates at any given level of inflation. This means that the same level of inflation can be achieved with a lower level of unemployment, which shifts the Phillips curve to the left.

An Increase in Worker Productivity Would Cause the Phillips Curve