2154EconomicsMedium
A decrease the Price of foreign oil?
AShifts the short run Phillips curve upward and makes the unemployment inflation trade-off more favorable
BShifts the short-run Phillips curve downward and make the unemployment inflation trade-off less favorable
CShifts the short run Phillips curve downward and makes the unemployment inflation trade off more favorable
Correct answer
C. Shifts the short run Phillips curve downward and makes the unemployment inflation trade off more favorable
Explanation
The correct answer is Shifts the short run Phillips curve downward and makes the unemployment inflation trade off more favorable.