Macro 10- Aims and conflicts and the Phillips curve

Cards (4)

  • What causes contractions in the short run phillips curve? changes in demand side policies causing AD to shift
  • what does higher unemployment mean? weak inflationary pressure higher unemployment favours employers since they set wages spending power falls leading to increase in AD
  • stagflation slow economic growth and increase in unemployment
  • what causes shifts in the Phillips curve changes to supply side policies