Question: Answer the following questions. a. Why does an upward shift in the Phillips curve correspond to an upward shift in the short-run aggregate supply curve?

Answer the following questions.
a. Why does an upward shift in the Phillips curve correspond to an upward shift in the short-run aggregate supply curve?
b. Why does a movement up and to the left along a Phillips curve correspond to a movement up and to the right along a short-run aggregate supply curve?

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a The short run Phillips Curve shifts up when expected inflation increases ... View full answer

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