In the period 2011 through 2018, as the economy slowly mended, the economy experienced an ongoing pattern of falling inﬂation coinciding with falling unemployment. This suggests a
A) movement up and to the left along a stable Phillips curve.
B) movement down and to the right along a stable Phillips curve.
C) Phillips curve shifting to the right.
D) Phillips curve shifting to the left.

Question

Quizplus · Accepted Answer

A Phillips curve shifting to the left indicates that for any given level of unemployment, inflation is lower, which aligns with the pattern of falling inflation and falling unemployment.

In the Period 2011 Through 2018, as the Economy Slowly