If There Is a Favourable Supply Shock, Which of the Following

question 116

Multiple Choice

If there is a favourable supply shock, which of the following will most likely happen?

• A)The aggregate supply curve and the short-run Phillips curve will both shift right.
• B)The aggregate supply curve and the short-run Phillips curve will both shift left.
• C)The aggregate supply curve will shift right, and the short-run Phillips curve will shift left.
• D)The aggregate supply curve will shift left, and the short-run Phillips curve will shift right.

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