Economics 9708 · AS & A Level · Price stability and inflation

Price stability and inflation — practice question

What factors would make the short-run Phillips curve shift rightward?

  • Athe unemployment rate is above the natural rate of unemployment, decreasing inflationary expectations
  • Bthe unemployment rate is above the natural rate of unemployment, increasing inflationary expectations
  • Cthe unemployment rate is below the natural rate of unemployment, decreasing inflationary expectations
  • Dthe unemployment rate is below the natural rate of unemployment, increasing inflationary expectations

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