An Increase in the Expected Inflation Rate Shifts

question 28

Multiple Choice

An increase in the expected inflation rate shifts

• A) both the short-run and the long-run Phillips curves upward.
• B) the short-run but not the long-run Phillips curve upward.
• C) the long-run but not the short-run Phillips curve upward.
• D) neither the short-run nor the long-run Phillips curve.

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