How Will a Favourable Supply Shock Shift the Short-Run Phillips

question 98

Multiple Choice

How will a favourable supply shock shift the short-run Phillips curve, and how does unemployment change?

• A) It will shift the short-run Phillips curve right, and unemployment will rise.
• B) It will shift the short-run Phillips curve right, and unemployment will fall.
• C) It will shift the short-run Phillips curve left, and unemployment will rise.
• D) It will shift the short-run Phillips curve left, and unemployment will fall.

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Definitions:

Tested

The process of evaluating skills, performance, reliability, or quality by administering a series of questions or activities under controlled conditions.

Equivalent Samples

Groups in a study or experiment that are made as similar as possible to ensure that results are due to the variable being tested rather than pre-existing differences among participants.

Cross-sectional

A research design that analyzes data from a population, or a representative subset, at a specific point in time.

Longitudinal

Relating to, involving, or measuring changes over time, especially in regards to the study or analysis of development or progression.