During a recession, there is a ________ the short-run Phillips curve, while during an expansion there is a ________ the short-run Phillips curve.
A) movement closer to; movement further from
B) downward movement along; upward movement along
C) upward movement along; downward movement along
D) rightward shift of; leftward shift of
E) leftward shift of; rightward shift of

Question

Quizplus · Accepted Answer

During a recession, unemployment rises and inflation tends to fall, leading to a downward movement along the short-run Phillips curve. During an expansion, unemployment falls and inflation tends to rise, leading to an upward movement along the curve.

During a Recession, There Is a ________ the Short-Run Phillips