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.

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Definitions:

Psychogenic Fugue

An uncommon mental disorder marked by temporary memory loss regarding one's own identity, encompassing recollections, character, and other features that define a person's individuality.

Organic Amnesia

Memory loss caused by physical damage or changes to the brain, which can result from injury, disease, or substance abuse.

Dissociative Identity Disorder

A psychological condition characterized by the presence of two or more distinct personality states that control an individual's behavior at different times.

Fugue State

A rare psychological state involving loss of personal identity and memory, often accompanied by unexpected travel or wandering.