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:

Interest

The charge for borrowing money or the return on invested capital, generally expressed as a percentage rate.

Furniture

Movable objects intended to support various human activities such as seating, eating, and sleeping, as well as to hold objects or store items.

Mortgage

A loan specifically used to purchase real estate, where the property serves as collateral until the debt is fully repaid.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage.