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.

---

Definitions:

Net Exports

The difference between a country's total value of exports and total value of imports.

Globalization

Globalization describes the process by which businesses or other organizations develop international influence or start operating on an international scale.

Exploited

Exploited describes a situation where individuals or groups are taken advantage of unfairly for others' benefit, often under conditions that undermine their rights or dignity.

Modern Economies

Economic systems that are characterized by complex financial markets, significant levels of investment in technology, and interconnected global trade relationships.