Adverse aggregate-supply shocks or stagflation would cause a:
A) Movement up along a stable Phillips Curve
B) Movement down along a stable Phillips Curve
C) Shift of the Phillips Curve to the left
D) Shift of the Phillips Curve to the right

Question

Quizplus · Accepted Answer

Adverse aggregate-supply shocks or stagflation typically cause the Phillips Curve to shift to the right, indicating higher inflation at every level of unemployment.

Adverse Aggregate-Supply Shocks or Stagflation Would Cause A