If aggregate demand increases significantly, what is the likely short-term effect on unemployment and inflation in an economy experiencing a Phillips curve trade-off?

When aggregate demand increases significantly, it means that consumers and businesses are spending more money in the economy. This higher demand for goods and services can lead to more production, which often requires hiring more workers. As a result, unemployment is likely to decrease because more people will find jobs to meet the increased demand. However, as businesses try to keep up with this demand, they may raise prices, leading to higher inflation. For example, if a restaurant sees more customers and needs to hire additional staff quickly, it might raise menu prices to cover the costs of new hires, showing the trade-off between lower unemployment and higher inflation.