Multiple Choice
Which of the following is correct if there is an adverse supply shock?
A) The short-run aggregate supply curve and the short-run Phillips curve both shift right.
B) The short-run aggregate supply curve and the short-run Phillips curve both shift left.
C) The short-run aggregate supply curve shifts right and the short-run Phillips curve shifts left.
D) The short-run aggregate supply curve shifts left and the short-run Phillips curve shifts right.
Correct Answer:
Verified
Correct Answer:
Verified
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