Movements upward along the short-run Phillips curve result from
A) expected increases in the inflation rate.
B) unexpected increases in the inflation rate.
C) expected decreases in the inflation rate.
D) unexpected decreases in the inflation rate.

Question

Quizplus · Accepted Answer

Movements upward along the short-run Phillips curve are typically associated with unexpected increases in the inflation rate, as this reflects a situation where inflation is higher than what workers and firms had anticipated, leading to adjustments in wages and prices.

Movements Upward Along the Short-Run Phillips Curve Result from