A decrease in the expected inflation rate shifts the short-run Phillips curve
A. downward and shifts the long-run Phillips curve leftward.
B. upward and shifts long-run Phillips curve rightward.
C. downward and creates a movement downward along the long -run Phillips curve.
D. upward and creates a movement upward along the long-run Phillips curve.
Answer:C
A decrease in the expected inflation rate shifts the short-run Phillips curve
A. downward and shifts the long-run Phillips curve leftward. B. upward and shifts long-run Phillips curve rightward. C. downward and creates a movement downward along the long -run Phillips curve. D. upward and creates a movement upward along the long-run Phillips curve.