In the Phillips curve equation,which of the following will cause an increase in the current inflation rate?

Question

Quizplus · Accepted Answer

According to the Phillips curve equation, an increase in the expected inflation rate (a) shifts the curve upward, which leads to an increase in the current inflation rate. Similarly, a reduction in the unemployment rate (b) also shifts the curve upward, leading to an increase in the current inflation rate. Finally, an increase in the markup (c) also leads to an increase in the current inflation rate. Therefore, all of the choices (A), (B), and (C) will cause an increase in the current inflation rate, making (D) the correct answer.

In the Phillips Curve Equation,which of the Following Will Cause