The Shift of the Short-Run Phillips Curve in the Figure

question 123

Multiple Choice

The shift of the short-run Phillips curve in the figure above is the result of

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

---

Definitions:

Price

The price in terms of money anticipated, needed, or given for purchasing something.

Supply

Supply is the total amount of a good or service available to consumers, often influenced by price, production costs, and market demand.

Quantity

The amount or number of a material or immaterial good considered as a unit or in total.

Technological Advance

Improvements in technology that increase productivity and efficiency, often leading to economic growth and new product development.