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:

Job Extension

Enlarging jobs by combining several relatively simple jobs to form a job with a wider range of tasks.

Decision-making Authority

The power or right conferred upon an individual or group to make official decisions on behalf of an organization or entity.

Industrial Engineering

The study of jobs to find the simplest way to structure work in order to maximize efficiency.

Complexity

The state or quality of being intricate or complicated, often referring to systems, problems, or processes.