g What will happen to the short-run Phillips curve? A. The short-run trade-off between uemployment and inflation will be better than before as the economy moves to a lower short-run Phillips curve. B. The short-run trade-off between uemployment and inflation will be worse than before as the economy moves to a higher short-run Phillips curve. C. The economy will go back to equilibrium with a lower inflation rate and a higher unemployment. D. The real wage will fall, unemployment will fall and the economy will go back to equilibrium with an even higher inflation rate.

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Kendall Coffey

7 February, 09:00

g What will happen to the short-run Phillips curve? A. The short-run trade-off between uemployment and inflation will be better than before as the economy moves to a lower short-run Phillips curve. B. The short-run trade-off between uemployment and inflation will be worse than before as the economy moves to a higher short-run Phillips curve. C. The economy will go back to equilibrium with a lower inflation rate and a higher unemployment. D. The real wage will fall, unemployment will fall and the economy will go back to equilibrium with an even higher inflation rate.

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Gustavo Kent · Answer 1

B. The short-run trade-off between uemployment and inflation will be worse than before as the economy moves to a higher short-run Phillips curve.

Explanation:

What will happen to the short-run Phillips curve? The short-run trade-off between unemployment and inflation will be worse than before as the economy moves to a higher short-run Phillips curve. The short-run Phillips curve shows that in the short-term there is a tradeoff between inflation and unemployment