Which of the following corresponds to a movement downward along a short-run Phillips curve?
A) The aggregate demand curve shifts rightward, moving up along a short-run aggregate supply curve.
B) The aggregate demand curve shifts leftward, moving down along a short-run aggregate supply curve.
C) The short-run aggregate supply curve shifts rightward, moving down along the aggregate demand curve.
D) The short-run aggregate supply curve shifts leftward, moving up along the aggregate demand curve.

Question

Which of the following corresponds to a movement downward along a short-run Phillips curve?  
A) The aggregate demand curve shifts rightward, moving up along a short-run aggregate supply curve. 
B) The aggregate demand curve shifts leftward, moving down along a short-run aggregate supply curve. 
C) The short-run aggregate supply curve shifts rightward, moving down along the aggregate demand curve. 
D) The short-run aggregate supply curve shifts leftward, moving up along the aggregate demand curve.

Quizplus · Accepted Answer

A movement downward along a short-run Phillips curve corresponds to a decrease in inflation and an increase in unemployment, which can be caused by a leftward shift of the aggregate demand curve, leading to a movement down along a short-run aggregate supply curve.

Which of the Following Corresponds to a Movement Downward Along