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What happens to inflation when there is a negative productivity (or supply) shock? Group of answer choices It speeds up, according to the Phillips curve
What happens to inflation when there is a negative productivity (or supply) shock? Group of answer choices It speeds up, according to the Phillips curve relation. Impossible to say. It depends on the relative sizes of the changes of aggregate supply and aggregate demand. Nothing. Productivity only effects labor demand, not prices. It speeds up, because of the effect on savers and investors
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