Consider a typical downward sloping short run Phillips curve. Which combination of events could cause 1) a movement along the particular short run Phillips curve (SRPC) to the "south-east" and then followed by 2) a leftward shift of the entire SRPC? Group of answer choices a)Decrease in government spending followed by a rightward shift in the short-run aggregate supply curve. b) Increase in money supply followed by a rightward shift in the short-run aggregate supply curve. c)Decrease in government spending followed by a leftward shift in the short-run aggregate supply curve. d)Increase in government spending followed by a rightward shift in the short-run aggregate supply curve.
Consider a typical downward sloping short run Phillips curve. Which combination of events could cause 1) a movement along the particular short run Phillips curve (SRPC) to the "south-east" and then followed by 2) a leftward shift of the entire SRPC? Group of answer choices a)Decrease in government spending followed by a rightward shift in the short-run aggregate supply curve. b) Increase in money supply followed by a rightward shift in the short-run aggregate supply curve. c)Decrease in government spending followed by a leftward shift in the short-run aggregate supply curve. d)Increase in government spending followed by a rightward shift in the short-run aggregate supply curve.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider a typical downward sloping short run Phillips curve. Which combination of events could cause 1) a movement along the particular short run Phillips curve (SRPC) to the "south-east" and then followed by 2) a leftward shift of the entire SRPC?
Group of answer choices
a)Decrease in government spending followed by a rightward shift in the short-run aggregate supply curve .
b) Increase in money supply followed by a rightward shift in the short-run aggregate supply curve.
c)Decrease in government spending followed by a leftward shift in the short-run aggregate supply curve.
d)Increase in government spending followed by a rightward shift in the short-run aggregate supply curve.
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