Rightward and Upward Shifts of the Phillips Curve in the 1970s

question 83

Multiple Choice

Rightward and upward shifts of the Phillips Curve in the 1970s and early 1980s were caused by

• A) adverse shocks to aggregate supply.
• B) adverse shocks to aggregate demand.
• C) an increase in the misery index.
• D) the Vietnam War.

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Definitions:

Industry Entry

The act of a new company entering an existing market with the intention of selling goods or services.

Profit Circumstances

Situations or factors that affect a company's ability to generate earnings above its costs.

Monopolistically Competitive

Describes a market structure where many firms offer products that are similar but not perfect substitutes, resulting in some control over pricing.