The short-run Phillips curve portrays a(n):
a. direct relationship between total employment and the inflation rate.
b. inverse relationship between inflation and total employment.
c. direct relationship between the unemployment rate and the inflation rate.
d. inverse relationship between the unemployment rate and the inflation rate.
e. inverse relationship between the price level and the unemployment rate.
Question 2
An increase in the expected inflation rate will:
a. shift the short-run Phillips curve upward and to the right.
b. shift the short-run Phillips curve downward and to the left.
c. not shift the short-run Phillips curve unless the unemployment rate changes.
d. cause the unemployment rate associated with each inflation rate to decrease.
e. tend to increase production unless the actual inflation rate also increases.
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