Movements up along a particular short run Phillips curve ____ consistent with movements up along a short run aggregate supply curve; movements to the right along a particular short run Phillips curve ____ consistent with movements to the right along a short run aggregate supply curve;
A)Are; are
B)Are; are not
C)Are not; are
D)Are not; are not

Question

Movements up along a particular short run Phillips curve ____ consistent with movements up along a short run aggregate supply curve; movements to the right along a particular short run Phillips curve ____ consistent with movements to the right along a short run aggregate supply curve;​
A)​Are; are
B)​Are; are not
C)​Are not; are
D)​Are not; are not

Quizplus · Accepted Answer

Movements up along a particular short-run Phillips curve indicate rising inflation and falling unemployment, which is consistent with movements up along a short-run aggregate supply curve due to higher prices for goods and services. However, movements to the right along a particular short-run Phillips curve indicate falling inflation and rising unemployment, which are not consistent with movements to the right along a short-run aggregate supply curve, as the latter would imply an increase in the total output (real GDP) at existing price levels, not a change in unemployment or inflation directly.

Movements Up Along a Particular Short Run Phillips Curve ____