How does an increase in the aggregate demand translate in the Phillips curve model?
A) as an upward movement along the short-run Phillips curve
B) as a shift to the right of the short-run Phillips curve
C) as a downward movement along the short-run Phillips curve
D) as a shift to the left of the short-run Phillips curve

Question

Quizplus · Accepted Answer

An increase in aggregate demand typically leads to higher inflation and lower unemployment, which is represented as an upward movement along the short-run Phillips curve.

How Does an Increase in the Aggregate Demand Translate in the Phillips