A rightward shift of the Phillips Curve suggests that a lower rate of unemployment is associated with
each inﬂation rate.

Question

Quizplus · Accepted Answer

A rightward shift of the Phillips Curve means that for any given level of unemployment, the inflation rate is higher than before. Therefore, a lower rate of unemployment is not associated with each inflation rate but rather with a higher inflation rate.

A Rightward Shift of the Phillips Curve Suggests That a Lower