The short-run Phillips curve will tend to shift during any period when:
A)aggregate supply changes.
B)real wages or input prices change because of changes in the supplies of labor or other inputs.
C)inflationary expectations change.
D)all of the above

Question

The short-run Phillips curve will tend to shift during any period when:​
A)​aggregate supply changes.
B)​real wages or input prices change because of changes in the supplies of labor or other inputs.
C)​inflationary expectations change.
D)​all of the above

Quizplus · Accepted Answer

The short-run Phillips curve shows the trade-off between inflation and unemployment in the short run. It will shift whenever there is a change in aggregate supply, real wages or input prices due to changes in the supply of labor or other inputs, or inflationary expectations. Therefore, all choices are correct, and the correct answer is D.

The Short-Run Phillips Curve Will Tend to Shift During Any