(Figure: Understanding Phillips Curves Shifts 2) What Would Cause an Outward

question 236

Multiple Choice

(Figure: Understanding Phillips Curves Shifts 2) What would cause an outward shift from Phillips curve PC₁ to Phillips curve PC₀?

• A) a decrease in the expected inflation rate
• B) an increase in the expected inflation rate
• C) a decrease in the natural rate of unemployment
• D) an increase in the natural rate of unemployment

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