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.
Answer:B
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.