if-a-country-experiences-a-sudden-increase-in-aggregate-demand-what-does-the-sho

Question

If a country experiences a sudden increase in aggregate demand, what does the short run Phillips Curve suggest about inflation and unemployment?

Accepted Answer

Inflation will rise and unemployment will fall.

Answer

Both inflation and unemployment will rise.

Answer

Both inflation and unemployment will fall.

Answer

Inflation will fall and unemployment will rise.