Consider a Nation Experiencing the Relationship Illustrated by the Short-Run

question 90

Multiple Choice

Consider a nation experiencing the relationship illustrated by the short-run Phillips curve. An increase in both unemployment and inflation in this nation over the next ten years can be explained by:

• A) a downward movement along the short-run Phillips curve.
• B) a series of outward shifts of the short-run Phillips curve.
• C) an upward movement along the short-run Phillips curve.
• D) a series of inward shifts of the short-run Phillips curve.
• E) a complete change in the slope of the Phillips curve.

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