A rightward shift of the Phillips Curve suggests that
A) a higher rate of unemployment is associated with each level of inﬂation rate.
B) a lower rate of inﬂation is associated with each level of unemployment rate.
C) the aggregate supply curve has shifted to the right.
D) the aggregate demand curve has shifted to the left.

Question

Quizplus · Accepted Answer

A rightward shift of the Phillips Curve suggests that a higher rate of unemployment is associated with each level of inflation rate, indicating that the economy may be experiencing a decrease in demand for labor or an increase in the natural rate of unemployment.

A Rightward Shift of the Phillips Curve Suggests That