What Would the Phillips Curve Look Like If Every Year

question 95

Essay

What would the Phillips curve look like if every year there was a regular shift in the aggregate supply curve to the left but with no corresponding change in the aggregate demand curve, that is, aggregate demand remained constant.

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Definitions:

Laissez-faire

An economic principle advocating minimal governmental interference in the free market and the economic affairs of individuals.

Bureaucratic Innovations

New methods, policies, or practices implemented within bureaucratic structures to improve efficiency, responsiveness, or outcomes in organizational or governmental operations.

Ethnicity

A category of people identified by common characteristics such as culture, language, or ancestral heritage.

Inequality

The unequal distribution of resources, opportunities, and rights among individuals or groups within a society.