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(Solved): Which of the following statements about the short-run Phillips curve is true? Outward shifts in ag ...



Which of the following statements about the short-run Phillips curve is true? Outward shifts in aggregate demand lead to a Phillips curve that has an inverse relationship between unemployment and inflation. The short-run Phillips curve is vertical at the natural rate of unemployment. Inward shifts in aggregate supply lead to a Phillips curve that has an inverse relationship between unemployment and inflation. Along the short-run Phillips curve, inflationary expectations increase as unemployment increases. The long-run and short-run Phillips curves intersect where the unemployment rate is zero.



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