A change in expected inflation shifts

A) the short-run Phillips curve, but not the long run Phillips curve.
B) the long-run Phillips curve, but not the long run Phillips curve.
C) neither the short-run nor the long-run Phillips curve.
D) both the short-run and long-run Phillips curve right.

Expected Inflation

The rate at which the general level of prices for goods and services is expected to rise.

Short-run Phillips Curve

A graphical representation that shows the inverse relationship between the rate of unemployment and the rate of inflation in an economy over the short term.

Long-run Phillips Curve

A concept in economics indicating that in the long term, there is no trade-off between inflation and unemployment, represented as a vertical line at the natural rate of unemployment.