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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 4
Problem 4
What causes a rightward shift in the short run Phillips curve due to a supply shock?
A
An increase in both inflation and unemployment rates.
B
A decrease in both inflation and unemployment rates.
C
A decrease in inflation and an increase in unemployment rates.
D
An increase in inflation and a decrease in unemployment rates.
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