BackPhillips Curve and Supply Shocks definitions
You can tap to flip the card.
Control buttons has been changed to "navigation" mode.
1/14BackSkip to main contentBackSupply Shock
An unexpected event causing sudden changes in production costs, often leading to shifts in aggregate supply and economic instability. Short Run Aggregate Supply
A curve showing the relationship between total output and price level, influenced by input costs and subject to sudden shifts. Input Prices
The costs of resources used by firms, such as gasoline, which directly affect production expenses and supply decisions. GDP
A measure of total economic output, reflecting the value of all goods and services produced within a country. Price Level
An index reflecting the average prices of goods and services in an economy, used to gauge inflation. Inflation
A sustained increase in the general price level, reducing purchasing power and often linked to supply shocks. Unemployment
The condition where individuals willing and able to work are unable to find jobs, often rising when output falls. Phillips Curve
A graphical representation showing the inverse relationship between inflation and unemployment in the short run. Short Run Phillips Curve
A curve illustrating the trade-off between inflation and unemployment, which can shift due to supply shocks. Equilibrium
A state where economic forces such as supply and demand are balanced, determining output and price levels. Trade-off
A situation where achieving lower unemployment may result in higher inflation, and vice versa, especially after shocks. Policy Makers
Individuals or groups responsible for designing strategies to address economic challenges like inflation and unemployment. Aggregate Supply
The total quantity of goods and services that producers are willing and able to supply at different price levels. Double Jeopardy
A scenario where the economy faces both rising inflation and unemployment simultaneously, complicating policy responses.
Back
05:19