Business, 16.04.2020 23:04 fendyli1529

The short-run Phillips curve exhibits ▼ no trade-off between unemployment and inflation a trade-off between inflation and unemployment a policy menu a structural relationship , whereas the long-run Phillips curve shows ▼ a trade-off between inflation and unemployment a policy menu no trade-off between inflation and unemployment a structural relationship . Suppose that the expected inflation rate increases from 4 percent to 6 percent. What will happen to the short-run Phillips curve? A. The short-run trade-off between uemployment and inflation will be better than before as the economy moves to a lower short-run Phillips curve. B. The short-run trade-off between uemployment and inflation will be worse than before as the economy moves to a higher short-run Phillips curve. C. The economy will go back to equilibrium with a lower inflation rate and a higher unemployment. D. The real wage will fall, unemployment will fall and the economy will go back to equilibrium with an even higher inflation rate.

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The short-run Phillips curve exhibits ▼ no trade-off between unemployment and inflation a trade-off...

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