In the Phillips curve is a:
A) temporary demand shock
B) permanent price change
C) temporary cost shock
D) temporary unemployment shock
E) structural macroeconomic change

Name: In the Phillips curve is a: A) temporary demand shock B) permanent price change C) temporary cost shock D) temporary unemployment shock E) structural macroeconomic change
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Question

In the Phillips curve  is a:
A) temporary demand shock 
B) permanent price change 
C) temporary cost shock 
D) temporary unemployment shock 
E) structural macroeconomic change

Quizplus · Accepted Answer

In the Phillips curve equation, $\bar{a}$ represents a temporary cost shock, which affects inflation temporarily.

In the Phillips Curve Is A