A beneficial supply shock will shift the short-run Phillips Curve

Name: A beneficial supply shock will shift the short-run Phillips Curve
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Question

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A beneficial supply shock increases the aggregate supply, causing a shift to the right in the short-run aggregate supply curve. This results in a lower price level and a higher level of output. As a result, the short-run Phillips curve shifts downward to the right, as there is now a lower level of inflation for any given level of unemployment.

A Beneficial Supply Shock Will Shift the Short-Run Phillips Curve