Moving upward along the aggregate supply curve is equivalent to

Question

Quizplus · Accepted Answer

Moving upward along the aggregate supply curve implies that there is an increase in aggregate output and prices. This is represented by a movement along the short-run Phillips curve upward, as there is a trade-off between lower unemployment and higher inflation in the short run. Moving leftward or rightward along the curve would indicate a shift in the relationship between unemployment and inflation, while moving downward along the curve would imply a decrease in both output and prices. Therefore, the best choice is E.

Moving Upward Along the Aggregate Supply Curve Is Equivalent to