An increase in the actual inflation rate is represented by a

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Quizplus · Accepted Answer

An increase in the actual inflation rate, assuming other factors remain constant, would result in a movement up and along a given Phillips curve. This is because Phillips curve represents the inverse relationship between unemployment and inflation. Therefore, as inflation increases, unemployment is expected to decrease, and this is reflected by an upward movement along the Phillips curve.

An Increase in the Actual Inflation Rate Is Represented by a