A Decrease in the Expected Inflation Rate Shifts the Short-Run

question 359

Multiple Choice

A decrease in the expected inflation rate shifts the short-run Phillips curve

• A) downward and shifts the long-run Phillips curve leftward.
• B) upward and creates a movement upward along the long-run Phillips curve.
• C) downward and creates a movement downward along the long -run Phillips curve.
• D) upward and shifts long-run Phillips curve rightward.