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

question 19

Multiple Choice

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

• A) It will shift the short-run Phillips curve right and raise inflation.
• B) It will shift the short-run Phillips curve right and lower inflation.
• C) It will shift the short-run Phillips curve left and raise inflation.
• D) It will shift the short-run Phillips curve left and lower inflation.

---

Definitions:

Instrument for Consideration

A formal legal document that signifies an agreement or contract between parties, often involving the exchange of goods, services, or monetary value.

Signature

A person's handwritten or digitally authenticated mark used to signify agreement, consent, or identification.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time.

Primarily Liable

Primarily liable refers to the party that is first and foremost responsible for fulfilling an obligation or compensating for a liability.