Draw the graph · Macro · Phillips curve
Better job matching
Drag a curve sideways, or use its arrows. A curve you do not move is a curve you are saying stays put. Make each shift clear enough that a reader could see it.
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Short-run Phillips curve shifts left. Long-run Phillips curve shifts left.
The long-run Phillips curve stands at the natural rate of unemployment. Faster job matching lowers frictional unemployment, so the natural rate falls and the LRPC shifts left. The short-run Phillips curve is anchored at the natural rate for the given expected inflation, so it shifts left with it.
The natural rate of unemployment is lower, with no lasting change in inflation.
Common mistake. A common error is to shift only the SRPC, or to move along it. A lasting fall in unemployment at unchanged inflation is a change in the natural rate, and that moves the LRPC.
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Lesson: Types of Unemployment