Which curve does an increase in expected inflation shift?
A)only the long-run Phillips curve
B)only the short-run Phillips curve
C)neither the short-run nor long-run Phillips curve
D)both the short-run and long-run Phillips curve

Question

Quizplus · Accepted Answer

An increase in expected inflation shifts the short-run Phillips curve to the right, as it reflects the trade-off between inflation and unemployment in the short term. The long-run Phillips curve is vertical and is not affected by changes in expected inflation.

Which Curve Does an Increase in Expected Inflation Shift