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In the accompanying graph, the long-run Phillips curve has shifted from LR to LR. Which of the following could explain this shift? Expansionary fiscal policy
In the accompanying graph, the long-run Phillips curve has shifted from LR to LR. Which of the following could explain this shift? Expansionary fiscal policy that reduces unemployment and increases inflation A lower expected rate of inflation The economy moving, reaching full employment, with real GDP corresponding to long-run aggregate supply More efficient labor markets that reduce frictional unemployment and the natural rate of unemployment An inward shift in short-run aggregate supply that increases cyclical unemployment
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