How Will a Favourable Supply Shock Shift the Short-Run Phillips

question 98

Multiple Choice

How will a favourable supply shock shift the short-run Phillips curve, and how does unemployment change?

• A) It will shift the short-run Phillips curve right, and unemployment will rise.
• B) It will shift the short-run Phillips curve right, and unemployment will fall.
• C) It will shift the short-run Phillips curve left, and unemployment will rise.
• D) It will shift the short-run Phillips curve left, and unemployment will fall.

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Definitions:

Cognitive Theorists

Researchers or psychologists who study the mental processes of perception, memory, judgment, and reasoning, and how these processes might influence behavior.

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A chronic mental health condition characterized by significant anxiety or fear of social situations, where individuals feel overly concerned about being judged or embarrassed.

Negative Aspects

The unfavorable or harmful parts or characteristics of a situation, phenomenon, or substance.

GABA Systems

Refers to the system in the brain that uses gamma-aminobutyric acid (GABA) as a neurotransmitter, playing a key role in regulating nervous system activity and involved in anxiety disorders.