The Short-Run Phillips Curve Relationship Indicates That

Multiple Choice

The short-run Phillips curve relationship indicates that

A) only an anticipated change in aggregate demand affects the inflation rate or the unemployment rate.
B) an unanticipated increase in aggregate demand raises the inflation rate but lowers the unemployment rate.
C) an unanticipated increase in aggregate demand lowers the inflation rate but raises the unemployment rate.
D) an unanticipated increase in aggregate demand raises both the inflation rate and the unemployment rate.