Multiple Choice
Suppose that weather around the world is especially good next year, so farmers have unusually good crops. What might we expect that this will do to the short-run and long-run Phillips curves?
A) This will shift both the short-run and long-run Phillips curves to the right.
B) This will shift both the short-run and long-run Phillips curves to the left.
C) This will shift the short-run Phillips curve to the left, but not affect the long-run Phillips curve.
D) This will shift the long-run Phillips curve to the left, but not affect the short-run Phillips curve.
Correct Answer:
Verified
Correct Answer:
Verified
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