The moderate Monetarist explanation of stagflation relies on two factors:______Phillips curve loops and ______shifts of the Phillips curve.

Question

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The moderate Monetarist explanation for stagflation includes clockwise Phillips curve loops and rightward shifts of the Phillips curve. This perspective suggests that stagflation can occur when the Phillips curve shifts to the right, indicating a higher rate of inflation for any given level of unemployment, and the economy moves in a clockwise loop on the curve due to policy responses and expectations adjustments.

The Moderate Monetarist Explanation of Stagflation Relies on Two Factors:______Phillips