How Does an Increase in the Expected Rate of Inflation

question 174

Multiple Choice

How does an increase in the expected rate of inflation shift the Phillips curves?

• A)It shifts only the short-run Phillips curve to the right.
• B)It shifts only the short-run Phillips curve to the left.
• C)It shifts both the short-run and long-run Phillips curves to the right.
• D)It shifts both the short-run and long-run Phillips curves to the left.

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