If expected inflation increases: A. the short run Phillips Curve shifts to the right.
What is inflation?
Inflation can be defined as the increase in the price of goods and service. When their is inflation in a country the purchasing power can tend to reduce.
An a rise in inflation can tend to have effect on demand curve based on the fact that the short run Phillips Curve will shifts to the right.
Therefore we can conclude that the correct option is A.
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