Question

Along a short-run aggregate supply curve, output is related to unexpected movements in the ______. Along a Phillips curve, unemployment is related to unexpected movements in the ______. price level; inflation rate inflation rate; price level unemployment rate; price level price level; level of output

Answer 1

The answer is price level and inflation rate

Step-by-step explanation:

Because the short run Phillips curve represents a combination of unemployment and inflation that an economy might experience given current expectations about inflation. It is an inverse relationship between inflation and unemployment.