On the modern Phillips curve, the initial impact of productivity impro

On the modern Phillips curve, the initial impact of productivity improvements that lower the costs of production is shown by ________.

A) an upward movement along the Phillips curve to a higher inflation rate
B) an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate
C) a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate
D) a downward movement along the Phillips curve to higher unemployment rates
E) none of the above

ANSWER

C