If the long-run Phillips curve shifts to the left,for any given rate of money growth and inflation the economy will have

Question

Quizplus · Accepted Answer

If the long-run Phillips curve shifts to the left, it means that there is a lower natural rate of unemployment for any given rate of inflation. This implies that the economy can attain a lower rate of unemployment without experiencing higher inflation. As a result, the economy will have lower unemployment and higher output. Option D is the only choice that indicates both lower unemployment and higher output.

If the Long-Run Phillips Curve Shifts to the Left,for Any