Which of the following would shift the short-run Phillips curve to the left?
A)a positive supply shock
B)an increase in inflationary expectations
C)an negative supply shock
D)either (a) or (c)

Question

Which of the following would shift the short-run Phillips curve to the left?
A)​a positive supply shock
B)​an increase in inflationary expectations
C)​an negative supply shock
D)​either (a) or (c)

Quizplus · Accepted Answer

A positive supply shock increases supply, lowering prices and reducing inflation at every level of unemployment, which shifts the short-run Phillips curve to the left.

Which of the Following Would Shift the Short-Run Phillips Curve