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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

How would a decrease in energy prices affect the Phillips curve?

To determine

Affect on Philips curve due to decrease in energy prices.

Explanation

As there is decrease in energy price level, which is positive supply shock of an economy. This will increase Aggregate supply, leading to rightward shift of AS curve...

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