Which of the following is NOT a typical cause for the Phillips curve to shift?
A) changing inflation expectations
B) an economy's self-correcting mechanism
C) a shifting short-run aggregate supply
D) a changing unemployment rate

Question

Quizplus · Accepted Answer

The Phillips curve illustrates the inverse relationship between inflation and unemployment. A changing unemployment rate is a movement along the Phillips curve, not a cause for it to shift. Shifts in the Phillips curve are typically caused by factors like changing inflation expectations, an economy's self-correcting mechanisms, and shifts in the short-run aggregate supply, not by changes in the unemployment rate itself.

Which of the Following Is NOT a Typical Cause for the Phillips