which of the following would cause the long - run phillips curve to shift to the right? choose 1 answer: a…

which of the following would cause the long - run phillips curve to shift to the right? choose 1 answer: a an increase in structural unemployment b a decrease in frictional unemployment c an decrease in aggregate demand (ad) d an increase in cyclical unemployment e an increase in aggregate demand (ad)

which of the following would cause the long - run phillips curve to shift to the right? choose 1 answer: a an increase in structural unemployment b a decrease in frictional unemployment c an decrease in aggregate demand (ad) d an increase in cyclical unemployment e an increase in aggregate demand (ad)

Answer

Brief Explanations:

The long - run Phillips curve is at the natural rate of unemployment. Structural unemployment is part of the natural rate. An increase in structural unemployment raises the natural rate of unemployment, shifting the long - run Phillips curve to the right. Frictional unemployment decreasing would lower the natural rate and shift it left. Changes in aggregate demand affect the short - run Phillips curve, not the long - run one directly. Cyclical unemployment is not part of the natural rate and doesn't shift the long - run Phillips curve.

Answer:

A. An increase in structural unemployment