Ceteris paribus, an increase in the current or actual rate of inflation will cause
A) the short-run Phillips curve to shift upward.
B) the unemployment rate to decrease (a movement along the short-run Phillips curve) .
C) the long-run Phillips curve to shift leftward.
D) expectations of future inflation rates to be revised downward.
E) cause the Bank of Canada to enact expansionary monetary policy.
Correct Answer:
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