Adverse aggregate-supply shocks or stagflation would cause a
A)movement up along a stable Phillips Curve.
B)movement down along a stable Phillips Curve.
C)shift of the Phillips Curve to the left.
D)shift of the Phillips Curve to the right.

Question

Quizplus · Accepted Answer

Adverse aggregate-supply shocks or stagflation typically cause the Phillips Curve to shift to the right, indicating higher inflation at each level of unemployment.

Adverse Aggregate-Supply Shocks or Stagflation Would Cause a