When the Aggregate Supply Curve Shifts Adversely, What Happens to the Relationship

question 159

Multiple Choice

When the aggregate supply curve shifts adversely, what happens to the relationship shown in the Phillips curve?

• A)It is reinforced, and made more applicable for policy.
• B)It is destroyed, and no longer applies for policy.
• C)It is unchanged, although the curve becomes less steep.
• D)It is unchanged, although the curve shifts inward and to the left.

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Definitions:

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An industrial production model based on mass production and consumption, characterized by standardized products and assembly-line mechanisms.

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