The short-run Phillips curve is another way of looking at
A) aggregate demand.
B) aggregate supply.
C) the natural rate of unemployment.
D) Okun's law as applied to aggregate demand.
E) potential GDP.

Question

Quizplus · Accepted Answer

The short-run Phillips curve shows the inverse relationship between unemployment and inflation in the short-run, which is determined by the aggregate supply in the economy. Therefore, the correct answer is aggregate supply, option (B). The other options are not directly related to the short-run Phillips curve.

The Short-Run Phillips Curve Is Another Way of Looking at