(40) Suppose the Phillips curve is the same as in the previous question. If the Fed wants inflation to be 5% this year, its target for output should be ____ . If output remains at this level for an extended period of time, expected inflation will eventually _____, causing the Phillips curve to shift _____.
Group of answer choices
500; fall; downward
500; rise; upward
1000; fall; downward
1000; rise; upward
Output Phillips Curve (e=7.5%)
17.5%
1
15.0%
12.5%
PC
10.0%
7.5%
5.0%
2.5%
0.0% 0
250
500
750
1000
1250
1500