A government decides to reduce its spending to control inflation. Which of the following categories best explains the expected outcome of this action in relation to the short-run Phillips curve?

When a government reduces its spending, it aims to lower the overall demand for goods and services in the economy. This decrease in demand can help control inflation, which is when prices rise too quickly. In the short run, the Phillips curve shows an inverse relationship between inflation and unemployment; as inflation decreases, unemployment may increase. For example, if the government cuts spending on public projects, fewer jobs may be created, leading to higher unemployment in the short term. Therefore, the expected outcome of reducing spending is a movement along the short-run Phillips curve, where inflation decreases but unemployment may rise.