Refer to the diagram. Point b would not be permanent because the:





A.  economy would move from b to a on PC 1 .

B.  short-run Phillips Curve would shift from PC 1 to PC 2 and unemployment would increase to the natural rate at c.

C.  economy would immediately move from b to c to d.

D.  economy would move from b directly to d.


B.  short-run Phillips Curve would shift from PC 1 to PC 2 and unemployment would increase to the natural rate at c.

Economics

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