Which of the Following Statements About the Long-Run Phillips Curve

question 118

Multiple Choice

Which of the following statements about the long-run Phillips curve is CORRECT?

• A) The long-run Phillips curve is horizontal.
• B) The long-run Phillips curve shifts leftward if the natural unemployment rate decreases.
• C) The long-run Phillips curve shifts rightward and upward if the expected inflation rate increases.
• D) The long-run Phillips curve shifts leftward if the natural unemployment rate increases.

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