Figure 28-3 
-Refer to Figure 28-3. The shifts shown in the short-run and long-run Phillips curves between period 1 and period 2 could be explained by
A) an increase in the expected inflation rate from 4.0 to 5.5 percent.
B) an increase in the natural rate of unemployment from 5.5 to 6.8 percent.
C) either an increase in expected inflation from 4.0 to 5.5 percent or an increase in the natural rate of unemployment from 5.5 to 6.8 percent.
D) None of the above is correct.
Correct Answer:
Verified
Q87: If expected inflation rises,the long-run Phillips curve
Q99: Figure 28-2 Q100: Figure 28-2 Q100: A decrease in expected inflation will Q104: If expected inflation falls,the long-run Phillips curve Q105: If workers and firms lower their inflation Q111: If the Federal Reserve attempts to continue Q116: Where does the short-run Phillips curve intersect Q117: The natural rate of unemployment will not Q118: An increase in frictional unemployment will
A)reduce real
A)shift the
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