As with demand and supply analysis, changes in the economy can cause both shifts of and movements along the short-run Phillips curve. Which of the following would cause a movement along the short-run Phillips curve?
a. An increase in consumer confidence
b. A decrease in short-run aggregate supply
c. An increase in government spending
Answers: 1
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As with demand and supply analysis, changes in the economy can cause both shifts of and movements al...
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