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A Decrease in the Expected Inflation Rate Shifts the Short-

Question 403

Multiple Choice

A decrease in the expected inflation rate shifts the short- run Phillips curve


A) upward and creates a movement upward along the long- run Phillips curve.
B) downward and shifts the long- run Phillips curve leftward.
C) downward and creates a movement downward along the long- run Phillips curve.
D) upward and shifts long- run Phillips curve rightward.

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