Question

g What will happen to the​ short-run Phillips​ curve? A. The​ short-run trade-off between uemployment and inflation will be better than before as the economy moves to a lower​ short-run Phillips curve. B. The​ short-run trade-off between uemployment and inflation will be worse than before as the economy moves to a higher​ short-run Phillips curve. C. The economy will go back to equilibrium with a lower inflation rate and a higher unemployment. D. The real wage will​ fall, unemployment will fall and the economy will go back to equilibrium with an even higher inflation rate.

Answer 1

B. The​ short-run trade-off between uemployment and inflation will be worse than before as the economy moves to a higher​ short-run Phillips curve.

Step-by-step explanation:

What will happen to the​ short-run Phillips​ curve? The​ short-run trade-off between unemployment and inflation will be worse than before as the economy moves to a higher​ short-run Phillips curve.The short-run Phillips curve shows that in the short-term there is a tradeoff between inflation and unemployment