The Phillips Curve Practice Test

Inflation increases and unemployment decreases as the economy moves along the short-run Phillips Curve.

Inflation and unemployment both return immediately to the natural rate because the long run begins instantly.

Inflation decreases and unemployment increases as the economy moves along the short-run Phillips Curve.

Inflation increases and unemployment increases because the short-run Phillips Curve shifts right.

Inflation decreases and unemployment decreases because the short-run Phillips Curve shifts left.