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If the Expected Inflation Rate Changes, the Long-Run Phillips Curve

Question 117

Multiple Choice

If the expected inflation rate changes, the long-run Phillips curve ________ and the short-run Phillips curve ________.


A) does not shift; does not shift
B) does not shift; shifts upward
C) shifts rightward; shifts upward
D) shifts rightward; shifts downward
E) shifts rightward; does not shift

Correct Answer:

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