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:

Entitled

Entitled means having a right or claim to something by law, social norms, or personal expectations, often involving privileges or properties.

Motivate

To provide someone with a reason for doing something; to inspire with a motive or motives; to incite to action.

Nascent Stage

This stage refers to the early phases in the lifecycle of a business or project, where the concept is being developed and initial steps are taken toward realization.

Months

Refers to the divisions of the year, usually understood as twelve periods based on the Gregorian calendar.