In recent years, inflation expectations have fallen. How did this shift the short-run Phillips curve, and what are the implications for unemployment?
A) This shifted the short-run Phillips curve left, meaning that at any given inflation rate, unemployment will be lower in the short run than before.
B) This shifted the short-run Phillips curve right, meaning that at any given inflation rate, unemployment will be lower in the short run than before.
C) This shifted the short-run Phillips curve right, meaning that at any given inflation rate, unemployment will be higher in the short run than before.
D) This shifted the short-run Phillips curve left, meaning that at any given inflation rate, unemployment will be higher in the short run than before.
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