The Phillips Curve (Macro Review) - Macro Topic 5.2

Mr. Clifford reviews the Phillips Curve, explaining its role in depicting economic states: recessionary gap, inflationary gap, and full employment. The short-run Phillips Curve is downward sloping, while the long-run curve is vertical. The video discusses how shifts in aggregate demand and supply affect the curve, illustrating these changes with graphs. It also covers the long-run adjustments in the economy, such as wage and resource price increases, and their impact on the Phillips Curve.

How does the long run Phillips Curve differ from the short run Phillips Curve?

What happens to the Phillips Curve when aggregate supply shifts to the left?