QuestionJune 21, 2025

The short-run Phillips curve will shift if there is an increase in inflation that is unanticipated. a decrease in inflation that is unanticipated. an increase in the unemployment rate. a change in inflation expectations.

The short-run Phillips curve will shift if there is an increase in inflation that is unanticipated. a decrease in inflation that is unanticipated. an increase in the unemployment rate. a change in inflation expectations.
The short-run Phillips curve will shift if there is
an increase in inflation that is unanticipated.
a decrease in inflation that is unanticipated.
an increase in the unemployment rate.
a change in inflation expectations.

Solution
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Answer

A change in inflation expectations. Explanation 1. Identify Factors Affecting the Phillips Curve The short-run Phillips curve shifts due to changes in inflation expectations. 2. Analyze Each Option An increase or decrease in unanticipated inflation does not shift the curve; it moves along the curve. A change in inflation expectations shifts the curve.

Explanation

1. Identify Factors Affecting the Phillips Curve<br /> The short-run Phillips curve shifts due to changes in inflation expectations.<br /><br />2. Analyze Each Option<br /> An increase or decrease in unanticipated inflation does not shift the curve; it moves along the curve. A change in inflation expectations shifts the curve.
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