Given the recent increase in personal income taxes, which of the following effects on the Phillips Curve dynamics illustrates the most accurate understanding of the resulting economic conditions?

The Phillips Curve shows the relationship between inflation and unemployment. When personal income taxes increase, people have less money to spend, which can lead to lower demand for goods and services. As demand decreases, businesses may hire fewer workers or lay off employees, causing unemployment to rise. This situation can shift the Phillips Curve, indicating that higher unemployment might be associated with lower inflation. For example, if a government raises taxes significantly, consumers might cut back on spending, leading to slower economic growth and potentially lower inflation rates in the short term.