Canada's inflation rises and unemployment falls After two months of little change, inflation rose to 3.1 percent a year in September and pushed the unemployment rate down to 7.1 percent. Source: TradingEconomics.com, October 7, 2011 With the expected inflation rate steady at 2.5 percent a year, did the economy move along its short-run Phillips curve? If so, how? Or did the economy move off its short-run Phillips curve? Question content area bottom Part 1 With expected inflation steady at 2.5 percent a year, _______. A. Canada moved up along its short-run Phillips curve as the expected inflation rate rose from 2.5 percent a year to 3.1 percent a year B. Canada moved down along its short-run Phillips curve as the inflation rate rose and the unemployment rate fell C. Canada's short-run Phillips curve shifted downward D. Canada's short-run Phillips curve shifted upward E. Canada moved up along its short-run Phillips curve as the inflation rate rose and the unemployment rate fell