Higher Than Expected Rates of Inflation Cause the Short-Run Phillips

question 17

Multiple Choice

Higher than expected rates of inflation cause the short-run Phillips curve to

• A) equal the aggregate demand curve.
• B) become horizontal.
• C) remain stable.
• D) shift further upward and out from the origin.
• E) reflect the fact that, in the long run, the actual rate of unemployment remains below the natural rate of unemployment.

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