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Phillips Curve and Supply Shocks
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Phillips Curve and Supply Shocks
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21. Revisiting Inflation, Unemployment, and Policy / Phillips Curve and Supply Shocks / Problem 2
Problem 2
How can a supply shock lead to a rightward shift in the short run Phillips curve?
A
By decreasing inflation and increasing unemployment rates.
B
By decreasing both inflation and unemployment rates.
C
By increasing both inflation and unemployment rates.
D
By increasing inflation and decreasing unemployment rates.
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