A negative supply shock, such as the OPEC oil price increases of the early 1970s, can be illustrated by a shift to the of the short-run aggregate supply curve and a shift ___ of the short-run Phillips curve.

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13-08-2020
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A negative supply shock, such as the OPEC oil price increases of the early 1970s, can be illustrated by a shift to the of the short-run aggregate supply curve and a shift ___ of the short-run Phillips curve.

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osondumartins osondumartins · Answer 1 · 2020-08-14T06:23:20+02:00

Answer: Leftward; upwards.

Explanation: A Supply shock is a term used to describe the sudden and unexpected change in the supply of a given product or commodity usually indicated by the leftward shift if the shock is negative in the aggregate supply curve and an upward change in direction in the Phillips curve both on the short run. Both curves are used to demonstrate graphically the impacts of shifts in supply for a given product or commodity.

A negative supply​ shock, such as the OPEC oil price increases of the early​ 1970s, can be illustrated by a shift to the​ ______________ of the​ short-run aggregate supply curve and a shift​ _________________ of the​ short-run Phillips curve.

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A negative supply shock, such as the OPEC oil price increases of the early 1970s, can be illustrated by a shift to the of the short-run aggregate supply curve and a shift ___ of the short-run Phillips curve.