If Expected Inflation Decreases Does the Short-Run Phillips Curve Shift

question 29

Essay

If expected inflation decreases does the short-run Phillips curve shift? If so, what direction does it shift? Does the long-run Phillips curve shift? If so, what direction does it shift?

---

Definitions:

Semispinalis Thoracis

A muscle in the back that extends from the thoracic vertebrae to the base of the skull, helping in the extension and rotation of the spine.

Multifidus

A muscle located in the spine that stabilizes the vertebrae and assists with spinal movements.

Quadratus Lumborum

A deep muscle in the lower back that helps with the stabilization of the pelvis and the spine, as well as aiding in lateral movement of the torso.

Serratus Posterior

A muscle group consisting of the serratus posterior superior and inferior, which aid in the movements of the rib cage.