Unexpected inventory changes, fixed wage contracts, and unexpected changes in the nominal wage rate are associated with a movement along the short-run Phillips curve.

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Unexpected inventory changes, fixed wage contracts, and unexpected changes in the nominal wage rate can all affect the level of output and employment in the short run, influencing the relationship between inflation and unemployment captured by the Phillips curve. Changes that impact the cost of production (such as changes in input prices, taxes, subsidies, or productivity) or aggregate demand (such as changes in exports, government purchases, or investment) can shift the short-run Phillips curve, while changes in expectations or inflationary pressure can affect the long-run Phillips curve.

Unexpected Inventory Changes, Fixed Wage Contracts, and Unexpected Changes in the Nominal