Scenario 35-1 Suppose That in the First Half of June 2022, the 2022

question 209

Multiple Choice

Scenario 35-1
Suppose that in the first half of June 2022, the effects of a housing and financial crisis and an increase in world prices of oil and foodstuffs were affecting the economy.
-Refer to Scenario 35-1. The short-run effects of rising world commodity prices are shown by

• A)moving to the right along the short-run Phillips curve.
• B)moving to the left along the short-run Phillips curve.
• C)shifting the short-run Phillips curve right.
• D)shifting the short-run Phillips curve left.

---

Definitions:

Ford Took Office

refers to when Gerald Ford became the 38th President of the United States, assuming office on August 9, 1974, following the resignation of Richard Nixon.

Impeached

The process by which a high-ranking public official is charged with misconduct or crimes, leading to a trial and, potentially, removal from office.

Vice President

The second-highest executive officer in the government of the United States, or in the administrative structure of other countries, elected simultaneously with the president and ready to assume the presidency in case of death, resignation, or removal of the president.

Stagflation

A combination of stagnant economic growth and high inflation present during the 1970s.