Problem
1. What is the effect of an increase in expected inflation on the Phillips curve?
2. What causes a change in the slope of the Phillips curve?
3. Why can the central bank have an incentive to increase the inflation rate if it believes that the Phillips curve is stable?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.