Suppose OPEC is unable to come to an agreement regarding oil production and as a result the price of oil drops. Which of the following would you expect to occur as a result of this favorable supply shock?a.The short-run Phillips curve will shift to the right and the unemployment rate will increase.b.The short-run Phillips curve will shift to the right and the unemployment rate will decrease.c.The short-run Phillips curve will shift to the left and the unemployment rate will increase.d.The short-run Phillips curve will shift to the left and the unemployment rate will decrease.
