If the central bank keeps the money supply growth rate constant, but people raise their inflation expectations by 1 percentage point, then the short-run Phillips curve shifts

A) right and the unemployment rate rises.
B) right and the unemployment rate falls.
C) left and the unemployment rate rises.
D) left and the unemployment rate falls.

Short-run Phillips Curve

A graphical representation showing the inverse relationship between unemployment and inflation rates in the short term.

Inflation Expectations

Inflation expectations are the rate at which people—consumers and investors—expect the general level of prices to change in the future.

Unemployment Rate

The portion of the labor market that consists of people who are jobless and actively on the lookout for work.