A Movement Along the SAS Curve That Brings a Lower

question 155

Multiple Choice

A movement along the SAS curve that brings a lower price level and a decrease in real GDP is equivalent to a

• A) movement along a short-run Phillips curve that brings a decrease in the inflation rate and an increase in the unemployment rate.
• B) movement along a short-run Phillips curve that brings an increase in the inflation rate and an increase in the unemployment rate.
• C) shift in the short-run Phillips curve that brings a decrease in the inflation rate and an increase in the unemployment rate.
• D) shift in the short-run Phillips curve that brings an increase in the inflation rate and an increase in the unemployment rate.

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