A movement from an upper point to a lower point on the Phillips curve shows

Question

Quizplus · Accepted Answer

A movement from an upper point to a lower point on the Phillips curve shows a decrease in the inflation rate (since lower inflation is associated with lower unemployment) and an increase in the unemployment rate. This means that as unemployment decreases, inflation increases, and as unemployment increases, inflation decreases. Therefore, choice D (decrease in the inflation and increase in the unemployment) is the best answer.

A Movement from an Upper Point to a Lower Point