Compared to the 1970s, how did the Canadian short-run Phillips curve move in recent years and why?
A)It has moved further right, as inflation expectations have risen.
B)It has further right, as inflation expectations have fallen.
C)It has further left, as inflation expectations have risen.
D)It has further left, as inflation expectations have fallen.

Question

Quizplus · Accepted Answer

In recent years, the Canadian short-run Phillips curve has shifted to the left as inflation expectations have become more anchored and stable, leading to lower inflation at any given level of unemployment.

Compared to the 1970s, How Did the Canadian Short-Run Phillips