Answer:
- Effect of inflationary flashpoint : Economic policies become tightened
- At the point where Unemployment is lowest in the Philips curve represents The flashpoint in Philips curve
Step-by-step explanation:
Inflationary flashpoints are the points where the aggregate supply curve experiences a very rapid/sharp increase
The Inflationary Flashpoint can affect policy decisions in ways that it will lead to an increase in unemployment caused by the increase in Inflation, and this will cause the economic policies to become tightened in order to curb the effects of Inflationary flashpoints
The Inflationary flashpoint is represented in the Philips Curve ( relationship between the inflation and unemployment rate ) at the point where Unemployment is lowest in the curve