WS, Real wage (W/P) PS, Output Inflation |VPC, VPC, Output Figure 11 Shift to the right of the VPC Figure 11 shows the Vertical Phillips Curve, VPC,, determined by the intersection of the wage-setting and price-setting curves, WSo and PSo. The Vertical Phillips Curve then shifts to the right to VPC,. Which one of the following explains this shift? (Hint: you may find it helpful to consider how the events below could affect the WS and PS curves) Select one: A: Oil prices rise as new sanctions are imposed on Iranian oil exports. B: A South African strike wave leads to higher worldwide coal prices C: New computer technology reduces warehouse costs. D: After new laws reduce worker rights, trade union membership soars. 1.

WS, Real wage (W/P) PS, Output Inflation |VPC, VPC, Output Figure 11 Shift to the right of the VPC Figure 11 shows the Vertical Phillips Curve, VPC,, determined by the intersection of the wage-setting and price-setting curves, WSo and PSo. The Vertical Phillips Curve then shifts to the right to VPC,. Which one of the following explains this shift? (Hint: you may find it helpful to consider how the events below could affect the WS and PS curves) Select one: A: Oil prices rise as new sanctions are imposed on Iranian oil exports. B: A South African strike wave leads to higher worldwide coal prices C: New computer technology reduces warehouse costs. D: After new laws reduce worker rights, trade union membership soars. 1.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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