An increase in the expected inflation rate leads to ________ the short-run Phillips curve.
A) a movement upward along
B) a movement downward along
C) an upward shift of
D) a downward shift of

Question

Quizplus · Accepted Answer

An increase in the expected inflation rate leads to an upward shift of the short-run Phillips curve, reflecting that at every level of unemployment, the rate of inflation will be higher.

An Increase in the Expected Inflation Rate Leads to ________