If Aggregate Demand Increases and Expectations Regarding Inflation Remain Constant

question 133

Multiple Choice

If aggregate demand increases and expectations regarding inflation remain constant,

• A) the economy moves along 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 long-run Phillips curve shifts to the right.

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Definitions:

Small Business Administration (SBA)

A U.S. government agency that provides support to entrepreneurs and small businesses.

Net New Jobs

The total number of jobs created in an economy over a specific time frame, after accounting for job losses, showcasing the employment growth rate.

Industry Employment

The aggregate number of jobs or positions filled or available in a specific industry or sector of the economy.

Intellectual Capital

The valuable skills and knowledge that employees of a business possess.