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If the Economy Moves Upward Along Its Short-Run Phillips Curve

Question 52

Multiple Choice

If the economy moves upward along its short-run Phillips curve, in the AS-AD diagram, this movement is shown by a


A) leftward shift of the AS curve and a movement along the AD curve.
B) rightward shift of the AS curve and a movement along the AD curve.
C) movement upward along the AS curve as a result of a rightward shift of the AD curve.
D) rightward shift of potential GDP.
E) movement downward along the AS curve as a result of a leftward shift of the AD curve.

Correct Answer:

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