Along a short-run aggregate supply curve, output is related to unexpected movements in the . Along a Phillips curve, unemployment is related to unexpected movements in the .
A)price level; inflation rate
B)rate; price level
C)unemployment rate; price level
D)price level; level of output

Question

Quizplus · Accepted Answer

In the short-run aggregate supply curve, output is related to unexpected movements in the price level. In the Phillips curve, unemployment is related to unexpected movements in the inflation rate.

Along a Short-Run Aggregate Supply Curve, Output Is Related to Unexpected