Stagflation on the Phillips curve: A simultaneous increase in inflation and unemployment caused by a negative supply shock, represented by an upward shift of the short-run Phillips curve.
How to apply it: Show stagflation as a leftward shift of SRAS in the AD-AS model and an upward shift of the SRPC on the Phillips curve graph.
Course: AP Macroeconomics · Unit: Long-Run Consequences of Stabilization Policies
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