Which of the following would correspond to 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 leftward,moving up along the aggregate demand curve.
D)The short-run aggregate supply curve shifts rightward,moving down along the aggregate demand curve.
E)Both the aggregate demand and the short-run aggregate supply curves shift leftward.

Question

Quizplus · Accepted Answer

A leftward shift in the aggregate demand curve would lead to lower inflation and higher unemployment, corresponding to a movement downward along the short-run Phillips curve.

Which of the Following Would Correspond to Movement Downward Along