Arrange the following steps in the correct order to illustrate how a shift in aggregate demand affects the Phillips Curve relationship between inflation and unemployment: A) Increased aggregate demand leads to higher output and employment, B) The economy reaches full employment, C) Higher employment leads to upward pressure on wages, D) Inflation rises due to increased demand for goods and services.

To understand how a shift in aggregate demand affects the Phillips Curve, we start with increased aggregate demand, which leads to higher output and employment. As more people find jobs, the economy approaches full employment. At this point, higher employment puts upward pressure on wages because companies need to pay more to attract workers. As wages rise, consumers have more money to spend, increasing demand for goods and services, which causes inflation to rise. This sequence shows how changes in aggregate demand can shift the relationship between inflation and unemployment illustrated by the Phillips Curve.