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Up1
Stagflation is most likely to occur when there is:
- A left shift in the SRAS curve
- A right shift in the SRAS curve
- A left shift in the AD curve
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Up5
Stagflation (high unemployment and high prices) is most
likely to occur when supply is suddenly tightened (left shift in the short run aggregate supply curve). Because there
is less goods, prices increase as consumers compete for them. Likewise,
companies are producing less, so require fewer workers. -
Up2
Good to know I remember something from Level 1.
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