Suppose that for years East Confetti’s short-run Phillips Curve was such that each 1 percentage point increase in its unemployment rate was associated with a 4 percentage point decline in its inflation rate. Then, during several recent years, the short-run pattern changed such that its inflation rate rose by 3 percentage point(s) for every 1 percentage point drop in its unemployment rate.
Graphically, did East Confetti’s Phillips Curve shift upward or did it shift downward?