Question

According to the Phillips Curve, the greater the aggregate demand for goods and services, the greater the economies output and the higher the overall price level. As such, higher levels of output result in _____________ levels of unemployment quilzet

Answer 1

Answer:

Lower

Step-by-step explanation:

If aggregate demand increases, then there will be a decline or decrease in unemployment in any country, even as more workers are hired, real GDP output and price level increases.

Phillips curve is simply a curve that depicts the short-run trade-off between inflation and unemployment.A decrease or a low unemployment correlates with high aggregated demand.

When there is a raise in aggregate demand = higher output + higher price level

On the Phillips curve, more GDP simply means less unemployment and higher price level.