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United StatesEconomicsQuick questions

Unit 5: Long-Run Consequences of Stabilization Policies

Quick questions on The Phillips curve - AP Macroeconomics Topic 5.2

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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Why is the long-run Phillips curve vertical? [2 points]
What is q2?
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A negative supply shock occurs. Which way does the short-run Phillips curve shift, and what happens to inflation and unemployment? [2 points]

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