A movement down along the short- run Phillips curve results from an unanticipated
A)increase in the natural unemployment rate.
B)increase in aggregate demand.
C)decrease in aggregate demand.
D)decrease in short- run aggregate supply.
E)increase in short- run aggregate supply.

Question

Quizplus · Accepted Answer

A movement down along the short-run Phillips curve is associated with lower inflation and higher unemployment, which can be caused by a decrease in aggregate demand.

A Movement Down Along the Short- Run Phillips Curve Results