Which of the following will shift the short-run Phillips Curve?
A)supply shocks
B)price controls
C)removal of price controls
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The short-run Phillips Curve can shift due to various factors that affect inflation and unemployment. Supply shocks, price controls, and the removal of price controls can all influence the inflation rate for a given level of unemployment, thereby shifting the curve. Supply shocks can directly affect production costs and prices, leading to inflationary or deflationary pressures. Price controls can artificially suppress or elevate prices, affecting the inflation rate. Similarly, the removal of price controls can lead to adjustments in prices, influencing the inflation rate.

Which of the Following Will Shift the Short-Run Phillips Curve