A rightward shift of the aggregate demand curve leads to
A) a leftward shift of the short-run Phillips curve.
B) a rightward shift of the short-run Phillips curve.
C) an upward movement along the short-run Phillips curve.
D) a downward movement along the short-run Phillips curve.
E) neither a movement along nor a shift in the short-run Phillips curve.

Question

Quizplus · Accepted Answer

A rightward shift of the aggregate demand curve typically leads to higher output and lower unemployment, causing an upward movement along the short-run Phillips curve, which shows the inverse relationship between inflation and unemployment.

A Rightward Shift of the Aggregate Demand Curve Leads to