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Suppose that for years East Confetti's short-run Phillips Curve was such that each 1 percentage point increase in its unemployment rate was associated with a
Suppose that for years East Confetti's short-run Phillips Curve was such that each 1 percentage point increase in its unemployment rate was associated with a 4 percentage point decline in its inflation rate. Then, during several recent years, the short-run pattern changed such that its inflation rate rose by 4 percentagepoints for every 2 percentage point drop in its unemployment rate.
Graphically, did East Confetti's Phillips Curve shift upward or did it shift downward?
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