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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