Suppose that an increase in aggregate demand causes an unplanned depletion in business inventories.Which of the following situations will result from this?
A) The economy moves up the short-run Phillips curve.
B) The short-run Phillips curve shifts to the right.
C) The short-run Phillips curve shifts to the left.
D) The aggregate supply curve shifts to the left.
E) The economy moves down the short-run Phillips curve.
Correct Answer:
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