The Cleveland Federal Reserve Bank's estimate of expected inflation has fallen from 3.5 percent in 2000 to 1.5 percent in 2013. This fall means that
A) the long-run Phillips curve shifted leftward.
B) the long-run Phillips curve shifted rightward.
C) the long-run Phillips curve shifted downward.
D) None of the above answers are correct because a change in the expected inflation rate does not shift the long-run Phillips curve.
Correct Answer:
Verified
Q277: Phillips curves describe the relationship between
A) aggregate
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Q279: Which of the following is held constant
Q280: The short-run Phillips curve shows a
A) positive
Q281: If the unemployment rate initially equals its
Q283: The long-run Phillips curve is
A) horizontal at
Q284: Along the long-run Phillips curve
A) actual inflation
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