If there has been an upward movement along the fixed short-run Phillips curve, the _____ curve has shifted to the _____.
A) SRAS; left
B) SRAS; right
C) AD; left
D) AD; right

Question

Quizplus · Accepted Answer

An upward movement along the fixed short-run Phillips curve indicates higher inflation and lower unemployment, which is typically caused by a rightward shift in the Aggregate Demand (AD) curve.

If There Has Been an Upward Movement Along the Fixed