A decrease in the growth rate of the money supply eventually causes the short-run Phillips curve to shift right.

Name: A decrease in the growth rate of the money supply eventually causes the short-run Phillips curve to shift right.
Brand: Quizplus
Rating: 5.0 (38 reviews)

Question

Quizplus · Accepted Answer

A decrease in the growth rate of the money supply would typically lead to lower inflation expectations, which could shift the short-run Phillips curve to the left, indicating lower inflation at each level of unemployment, not to the right.

A Decrease in the Growth Rate of the Money Supply