Short-Run Phillips Curve Concepts

What relationship does the short-run Phillips curve illustrate?

• A direct relationship between inflation and unemployment.

• An inverse relationship between inflation and unemployment.

• No relationship between inflation and unemployment.

• A direct relationship between interest rates and unemployment.

What is a key characteristic of the long-run Phillips curve?

• It is downward sloping, showing a trade-off between inflation and unemployment.

• It is vertical at the natural rate of unemployment.

• It shifts rightward when aggregate demand increases.

• It becomes horizontal during periods of economic growth.

If consumer spending increases, how would this be represented on the short-run Phillips curve?

• A leftward shift of the short-run Phillips curve.

• A rightward shift of the short-run Phillips curve.

• A movement upward along the short-run Phillips curve.

• A movement downward along the short-run Phillips curve.

A decrease in short-run aggregate supply will cause the short-run Phillips curve to:

• Shift to the left.

• Shift to the right.

• Move upward along the curve.

• Move downward along the curve.