On a Phillips curve diagram, an increase in the rate of inflation, other things being equal, is represented by a(n):
A)upward movement along the Phillips curve.
B)downward movement along the Phillips curve.
C)upward shift of the Phillips curve.
D)downward shift of the Phillips curve.

Question

Quizplus · Accepted Answer

An increase in the rate of inflation, with other factors constant, results in an upward movement along the Phillips curve, indicating a trade-off with lower unemployment.

On a Phillips Curve Diagram, an Increase in the Rate