When the government decreases spending to combat inflation, this action is expected to lead to a movement along the short-run ______ curve, illustrating the trade-off between inflation and unemployment.

When the government decreases spending to fight inflation, it means they are putting less money into the economy. This can lead to lower demand for goods and services, which might cause businesses to hire fewer workers or even lay some off. As a result, unemployment may rise, while inflation could decrease, showing a trade-off between the two. This situation is represented by a movement along the short-run Phillips curve, which illustrates this relationship. For example, if the government cuts funding for public projects, fewer jobs may be available, leading to higher unemployment even as prices stabilize.