If there is a favorable supply shock which direction does the short-run Phillips curve shift? What initially happens to unemployment and inflation as a result of this shock?

The short-run Phillips curve shifts left. The unemployment rate and the inflation rate both fall.

Economics

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Over what range of prices does a surplus arise? What happens to the price when there is a surplus?

What will be an ideal response?

Economics

Payroll taxes are actually regressive taxes

a. True b. False Indicate whether the statement is true or false

Economics