Which of the following graphs correctly represents the effect on the Phillips curve if there is widespread production technology improvement in Bangladesh?

Question

Quizplus · Accepted Answer

Widespread production technology improvement leads to a decrease in production costs, which shifts the short-run Phillips curve downward and to the right, resulting in lower inflation and lower unemployment. This is represented by option B, where the Phillips curve shifts from SRPC1 to SRPC2. The other options either show an upward shift in the Phillips curve or no shift at all, which does not accurately reflect the impact of the technology improvement on the economy.

Which of the Following Graphs Correctly Represents the Effect on the Phillips