Rising Inflation as a Consequence of 'Too Low' Unemployment

Upward Shift of the Phillips Curve from Increased Expected Inflation

Evaluating a Long-Term Economic Policy

The Case of Accelerating Inflation in Veridia

A country's central bank successfully maintains an unemployment rate below what is considered its long-run sustainable level for several consecutive years. In the first year, inflation rises from 2% to 4%. Based on the principle that people's expectations of future price increases influence their economic behavior, what is the most likely trend for the inflation rate in the subsequent years if this policy continues?

A government implements a policy that keeps the unemployment rate consistently below the level that the economy can sustain in the long run. According to the theory of accelerating inflation, arrange the following events in the logical sequence that would occur over time.