Assume that the economy self corrects to long-run equilibrium without a governmental policy. Which of the following is the correct adjustment on the Phillips Curve Graph? Movement downward along the existing short-run Phillips CurveMovement upward along the existing short-run Phillips CurveRightward shift of the short-run Phillips CurveLefttward shift of the short-run Phillips CurveRightward shift of the long-run Phillips CurveLeftward shift of the long-run Phillips Curve

Answered: Assume that the economy self corrects…

Assume that the economy self corrects to long-run equilibrium without a governmental policy. Which of the following is the correct adjustment on the Phillips Curve Graph?

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter35: The Short-Run Trade-off Between Inflation And Unemployment

Section: Chapter Questions

Problem 3QCMC

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Question

Assume that the economy self corrects to long-run equilibrium without a governmental policy. Which of the following is the correct adjustment on the Phillips Curve Graph?

Movement downward along the existing short-run Phillips Curve
Movement upward along the existing short-run Phillips Curve
Rightward shift of the short-run Phillips Curve
Lefttward shift of the short-run Phillips Curve
Rightward shift of the long-run Phillips Curve
Leftward shift of the long-run Phillips Curve

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