An Increase in Expected Inflation Will Shift

question 46

Multiple Choice

An increase in expected inflation will shift

• A) both the short-run and the long-run Phillips curves to the right.
• B) only the short-run Phillips curve to the right.
• C) only the long-run Phillips curve to the right.
• D) the short-run Phillips curve to the right and increase the slope of the long-run Phillips curve.

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