24. The short-run Phillips curve shows the combinations of

a. unemployment and inflation that arise in the short run as aggregate demand shifts the

economy along the short-run aggregate supply curve.

b. unemployment and inflation that arise in the short run as short-run aggregate supply

shifts the economy along the aggregate demand curve.

c. unemployment and inflation that arise in the long run as aggregate demand shifts the

economy along the long-run aggregate supply curve.

d. real GDP and the price level that arise in the short run as short-run aggregate supply

shifts the economy along the aggregate demand curve.

e. None of the above are correct.

Question

Gideon Benton

Social Studies

18 September, 23:01

24. The short-run Phillips curve shows the combinations of

a. unemployment and inflation that arise in the short run as aggregate demand shifts the

economy along the short-run aggregate supply curve.

b. unemployment and inflation that arise in the short run as short-run aggregate supply

shifts the economy along the aggregate demand curve.

c. unemployment and inflation that arise in the long run as aggregate demand shifts the

economy along the long-run aggregate supply curve.

d. real GDP and the price level that arise in the short run as short-run aggregate supply

shifts the economy along the aggregate demand curve.

e. None of the above are correct.

+1

Answers (1)

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Dimples · Answer 1

The short-run Phillips curve shows the combinations of unemployment and inflation that arise in the short run as aggregate demand shifts the economy along the short-run aggregate supply curve.

Answer: Option A

Explanation:

The short run Phillips curve is that curve which shows the relation ship between the unemployment rate and the rate of inflation as an important concept in economics.

The curve shows this relation ship and the arising of the unemployment and the inflation because of the shift in the aggregate demand curve in the short run. It also shows the shift in the economy along the aggregate supply curve in the short run.