Figure
The Economy in 2008
In the first half of June 2008 the effects of a housing and financial crisis and an increase in world prices of oil and foodstuffs were impacting the economy.
-Refer to The Economy in 2008.The short-run effects of rising world commodity are shown by

Question

Quizplus · Accepted Answer

Rising world commodity prices would cause an increase in the cost of production, leading to a rise in prices and a decrease in output, shifting the short-run Phillips curve to the right.

Figure The Economy in 2008