(Solved): The following graph shows a short-run Phillips curve for a hypothetical economy. Show the short-run ...

The following graph shows a short-run Phillips curve for a hypothetical economy. Show the short-run effect of a contractionary monetary policy by dragging the point along the short-run Phillips curve (SRPC) or shifting the curve to the appropriate position. Now, show the long-run effect of a contractionary monetary policy by dragging either the short-run Phillips curve (SRPC), the long-run Phillips curve ( $LRPC)$, or both. As expected, inflation and the short-run Phillips curve shifts , illustrating that the cost of fighting inflation is Which of the following is an example of a cost of inflation? Check all that apply. A restaurant's costs to reprint its menu to reflect fluctuating prices A general decrease in purchasing power Increased variability of relative prices An unintended redistribution of wealth from borrowers to lenders