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Figure: Understanding Phillips Curves Shifts 2
-(Figure: Understanding Phillips Curves Shifts 2) What would cause an outward shift from Phillips curve PC₁ to Phillips curve PC₀?

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Figure: Understanding Phillips Curves Shifts 2

-(Figure: Understanding Phillips Curves Shifts 2) What would cause an outward shift from Phillips curve PC₁ to Phillips curve PC₀?

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An increase in the expected inflation rate would cause an outward shift of the Phillips curve, as it implies higher inflation for any given level of unemployment.

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