If the short-run Phillips curve shifts to the right, we can conclude that
A) the tradeoff between inflation and unemployment worsens over time.
B) the tradeoff between inflation and unemployment improves over time.
C) higher inflation rates are associated with any given level of unemployment.
D) the tradeoff between inflation and unemployment remains unchanged.
E) the unemployment rate rises for any given inflation rate.

Question

Quizplus · Accepted Answer

If the short-run Phillips curve shifts to the right, it means that the economy experiences higher inflation rates for any given level of unemployment. This implies that the tradeoff between inflation and unemployment worsens over time, as higher inflation rates are associated with any given level of unemployment.

If the Short-Run Phillips Curve Shifts to the Right, We