Moving upward along the aggregate supply curve, is equivalent to
A) moving downward along the short-run Phillips curve.
B) moving upward along the short-run Phillips curve.
C) shifting the short-run Phillips curve rightward.
D) shifting the short-run Phillips curve leftward.
E) shifting the short-run Phillips curve upward.

Question

Quizplus · Accepted Answer

Moving upward along the aggregate supply curve means that there is an increase in the price level with no change in the unemployment rate. This corresponds to a movement upward along the short-run Phillips curve, as higher prices lead to lower unemployment in the short run due to firms responding to higher demand by increasing output and hiring more workers. Therefore, the correct answer is B, moving upward along the short-run Phillips curve.

Moving Upward Along the Aggregate Supply Curve, Is Equivalent to