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MMLU / Suppose the economy is in long-run equilibrium when a temporary expansionary…

Problem

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question

Suppose the economy is in long-run equilibrium when a temporary expansionary supply shock is felt in the economy. This changes the short-run Phillips curve the short-run unemployment rate and the long-run unemployment rate in which of the following ways? SHORT-RUN PHILLIPS CURVE     SHORT-RUN UNEMPLOYMENT     LONG-RUN UNEMPLOYMENT

choices

  1. Shifts down     Falls     Rises
  2. Shifts up     Rises     Falls
  3. Shifts down     Falls     Falls
  4. Shifts up     Rises     Rises

subject

high_school_macroeconomics

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Source and history

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