The Phillips Curve Reveals That with a Constant Short-Run Aggregate

question 49

Multiple Choice

The Phillips Curve reveals that with a constant short-run aggregate supply curve, the larger the increase in aggregate demand:

• A)the lesser the increase in real output and the higher the rate of inflation.
• B)the greater the increase in real output and the higher the rate of inflation.
• C)the greater the increase in real output and the lower the rate of inflation.
• D)the lesser the increase in real output and the lower the rate of inflation.