Demand-side policies alone result in which of the following?
A)A shift of the Phillips curve to the left.
B)A movement along the Phillips curve.
C)A shift of the Phillips curve to the right.
D)Stagflation.

Question

Quizplus · Accepted Answer

Demand-side policies, which focus on stimulating aggregate demand through measures such as fiscal and monetary policies, result in a movement along the Phillips curve. This is because these policies can increase aggregate demand and thus increase both inflation and employment levels. However, they do not address the underlying causes of inflation and unemployment, which means that they may not be effective in the long run.

Demand-Side Policies Alone Result in Which of the Following