If the short-run Phillips curve shifts to the right, we can conclude that:
A)the tradeoff between inflation and unemployment has improved over time.
B)the tradeoff between inflation and unemployment has worsened over time.
C)the inflation rate associated with any given level of unemployment has declined.
D)the unemployment rate has fallen for any given inflation rate.
E)the tradeoff between inflation and unemployment has remained unchanged.

Question

Quizplus · Accepted Answer

When the short-run Phillips curve shifts to the right, it means that there is now a higher level of unemployment associated with any given rate of inflation. This implies that the tradeoff between inflation and unemployment has worsened over time.

If the Short-Run Phillips Curve Shifts to the Right, We