Which of the following could create a movement along the short-run Phillips curve so that the unemployment rate temporarily falls below the natural unemployment rate?

A) an increase in aggregate demand and a quickly responsive wage rate
B) a decrease in aggregate demand and a sticky wage rate
C) an increase in aggregate demand and a sticky wage rate
D) an increase in aggregate supply and a sticky wage rate
E) a decrease in aggregate demand and a quickly responsive wage rate


C

Economics

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