If the ________ curve shifts from year to year and the ________ curve does not, then the Phillips curve would show a positive relationship between inflation and unemployment rates.

Question

Quizplus · Accepted Answer

If the aggregate supply curve remains constant while the aggregate demand curve shifts, this would result in changes in both inflation and unemployment rates. As inflation increases due to the shift in the aggregate demand curve, unemployment rates decrease, leading to a positive relationship between the two variables. This is known as the short-run Phillips curve.

If the ________ Curve Shifts from Year to Year and the ________

If the Curve Shifts from Year to Year and the