How does an increase in aggregate demand affect the short-run Phillips Curve, assuming no changes in inflation expectations?

An increase in aggregate demand means that people and businesses want to buy more goods and services in the economy. When this happens, companies need to produce more, which often requires hiring more workers. As unemployment decreases because more people are employed, wages may rise, leading to higher inflation. In the short run, the Phillips Curve shows an inverse relationship between unemployment and inflation, so when aggregate demand increases, we may see lower unemployment but higher inflation. For example, if a government spends more money on building roads, more workers will be needed, reducing unemployment while prices for goods and services may start to rise due to increased demand.