Along a Short-Run Phillips Curve, Suppose the Expected Inflation Rate

question 89

Multiple Choice

Along a short-run Phillips curve, suppose the expected inflation rate is 6 percent. If the actual inflation rate turns out to be 8 percent, then

• A) there is a movement upward along the short-run Phillips curve.
• B) there is a movement downward along the short-run Phillips curve.
• C) there is a downward shift of the short-run Phillips curve.
• D) None of the above answers are correct.

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