Refer to Monetary Policy in Southland.Suppose that the Southland Department of Finance undertakes a public relations campaign to convince people that they will soon change monetary policy to reduce inflation to 12.5%.If Southlanders believe their government then which,if any,curve(s)shift left?

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If Southlanders believe that the government is committed to reducing inflation to 12.5%, they will adjust their expectations of future inflation accordingly. This will shift the short-run Phillips curve to the left as inflation expectations have decreased, but it will not shift the long-run Phillips curve since the government's announcement does not directly affect the natural rate of unemployment or potential output in the economy.