What is the effect of an increase in aggregate demand on the short-run Phillips curve?When aggregate demand increases, _______. A.the short-run Phillips curve shifts upward B.the short-run Phillips curve shifts downward C.a movement occurs upward along the short-run Phillips curve D.a movement occurs downward along the short-run Phillips curve

Phillips curve represents the relationship between the inflation and unemployment. A high rate of…

Answered: What is the effect of an increase in…

What is the effect of an increase in aggregate demand on the short-run Phillips curve? When aggregate demand increases, _______. A. the short-run Phillips curve shifts upward B.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter17: The Philips Curve And Expetactions Theory

Section: Chapter Questions

Problem 2SQ

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Question

What is the effect of an increase in aggregate demand on the short-run Phillips curve?

When aggregate demand increases, _______.

the short-run Phillips curve shifts upward

the short-run Phillips curve shifts downward

a movement occurs upward along the short-run Phillips curve

a movement occurs downward along the short-run Phillips curve

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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What occurs when the natural unemployment rate increases? A. The short-run Phillips curve doesn't change and the long-run Phillips curve shifts rightward. B. The long-run Phillips curve doesn't change and the short-run Phillips curve shifts upward. C. The long-run and short-run Phillips curves shift rightward and the expected inflation rate rises. D. The long-run and short-run Phillips curves shift rightward and the expected inflation rate doesn't change. tha nks
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