Which of the following would shift the long-run Phillips curve to the right?

Question

Quizplus · Accepted Answer

Increases in unemployment compensation would increase the natural rate of unemployment, which would shift the long-run Phillips curve to the right. This is because workers would be more likely to accept higher levels of unemployment due to the availability of compensation, leading to a higher rate of unemployment for any given level of inflation. A shift to the right in the long-run Phillips curve means that the economy would experience a higher level of unemployment at any given level of inflation.

Which of the Following Would Shift the Long-Run Phillips Curve