Figure 28-3
-Refer to Figure 28-3.Consider the shift in the short-run Phillips curves shown in the above graph. This shift may be explained by
A) an increase in the natural rate of unemployment from 5.0 to 6.2 percent.
B) an increase in the expected rate of inflation from 4.0 to 5.5 percent.
C) either an increase in the natural rate of unemployment from 5.0 to 6.2 percent or an increase in the expected rate of inflation from 4.0 to 5.5 percent.
D) None of the above are correct.
Correct Answer:
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