Both the long-run and the short-run Phillips curves shift if
A) expected real GDP changes.
B) the expected inflation rate changes.
C) the natural unemployment rate changes.
D) the expected unemployment rate changes.
E) the actual inflation rate changes.

Question

Quizplus · Accepted Answer

The natural unemployment rate is the rate of unemployment that exists even in the long run when the economy is at full employment. If the natural unemployment rate changes, then both the long-run and the short-run Phillips curves will shift.

Both the Long-Run and the Short-Run Phillips Curves Shift If