The Phillips Curve and Inflation — End of Chapter Problem If Congress levies a new $1,000 per car tax on car manufacturers to pay for expanded Social Security benefits, how do you think this will impact unexpected inflation? Unexpected inflation will fall, since the unexpected component of inflation will decrease as managers incorporate the increased costs into their expectations. not change, as managers will have a sufficient amount of time to incorporate the increased costs into their expectations. not change, as managers have rational expectations. rise, as the increase in production costs will generate cost‑push inflation before managers can incorporate the change into their expectations.