Exhibit: Short-Run Phillips Curve As the short-run Phillips curve shifts from A to B to C to D, policymakers face:
A)the same tradeoff between inflation and unemployment.
B)a lower rate of inflation for any level of unemployment.
C)a higher rate of inflation for any level of unemployment.
D)higher than expected inflation rates and lower unemployment rates.

Question

Exhibit: Short-Run Phillips Curve  As the short-run Phillips curve shifts from A to B to C to D, policymakers face:
A)the same tradeoff between inflation and unemployment. 
B)a lower rate of inflation for any level of unemployment. 
C)a higher rate of inflation for any level of unemployment. 
D)higher than expected inflation rates and lower unemployment rates.

Quizplus · Accepted Answer

The Answer of Exhibit: Short-Run Phillips Curve  As the short-run Phillips curve shifts from A to B to C to D, policymakers face:
A)the same tradeoff between inflation and unemployment. 
B)a lower rate of inflation for any level of unemployment. 
C)a higher rate of inflation for any level of unemployment. 
D)higher than expected inflation rates and lower unemployment rates.

Exhibit: Short-Run Phillips Curve as the Short-Run Phillips Curve