1.   As more firms enter an industry, the supply curve will shift to the right.

2.   But if the expected rate of inflation changes then the Phillips curve will shift.

3.   What might cause the demand curve to shift?

4.   The demand curve for sterling will shift to the left and the supply curve will shift to the right until they intersect at the fixed rate of exchange.

5.   Monetarists argue that the L curve does not shift very much.

6.   Unfortunately, the demand curve may shift unpredictably, making control very difficult.