More Flexible Labour Markets Will Shift the Long-Run Phillips Curve

question 36

Multiple Choice

More flexible labour markets will shift the long-run Phillips curve and the long-run aggregate-supply curve in which direction?

• A) They will shift both the long-run Phillips curve and the long-run aggregate-supply curve to the right.
• B) They will shift both the long-run Phillips curve and the long-run aggregate-supply curve to the left.
• C) They will shift the long-run Phillips curve to the right and the long-run aggregate-supply curve to the left.
• D) They will shift the long-run Phillips curve to the left and the long-run aggregate-supply curve to the right.

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