Asked by Alicia Ebding on May 31, 2024
Verified
An adverse supply shock shifts the short-run Phillips curve to the left.
Adverse Supply Shock
An unexpected event that suddenly decreases the supply of a good or service, potentially leading to higher prices and lower output.
Short-Run Phillips
A concept describing the inverse relationship between unemployment and inflation within a short-term period.
Left
Politically, refers to ideologies and movements that typically advocate for social equality, government intervention in the economy to redistribute wealth, and the protection of social welfare programs.
- Ascertain the consequences of changes in aggregate supply and demand on economic outcomes.
Verified Answer
TH
Tanner HearneJun 02, 2024
Final Answer :
False
Explanation :
An adverse supply shock shifts the short-run Phillips curve to the right, indicating higher inflation for any given level of unemployment.
Learning Objectives
- Ascertain the consequences of changes in aggregate supply and demand on economic outcomes.