According to the expectations-augmented Phillips curve model,a(n)___________ revision of the public's expectations of inflation will result in a(n)___________ shift in the ___________ Phillips curve.

Question

Quizplus · Accepted Answer

An upward revision of the public's expectations of inflation leads to an upward shift in the short-run Phillips curve, as higher expected inflation increases wage demands and prices.

According to the Expectations-Augmented Phillips Curve Model,a(n)___________ Revision of the Public's