An increase in the natural rate of unemployment shifts the short-run Phillips curve to the _____. If the central bank sees the increase in the unemployment rate, but thinks the natural rate has remained the same and so wants to reduce unemployment, it would ________ the money supply growth rate. If it maintains this money supply growth rate, eventually the short run Phillips curve will shift _____ and unemployment will be _____.

Natural Rate

Refers to the level of economic output or unemployment that is consistent with stable inflation, not influenced by short-term fluctuations.

Money Supply Growth

An increase in the total amount of money in circulation or in the economy, which can affect inflation rates, interest rates, and economic growth.

Phillips Curve

A concept in economics illustrating an inverse relationship between the rate of unemployment and the rate of inflation within an economy.