Identify how each of the following affects inflation, unemployment, and the short-run Phillips curve. An increase in government spending. A drop in inflationary expectations.
A) Increases inflation, decreases unemployment, shifts the Phillips curve left
B) Decreases inflation, increases unemployment, shifts the Phillips curve right
C) Increases inflation, increases unemployment, shifts the Phillips curve right
D) Decreases inflation, decreases unemployment, shifts the Phillips curve left
