AP Economics Phillips Curve Worksheet Review Questions: 1) According the Phillips Curve, as unemployment falls what happens to inflation? Why? 2) According the Phillips Curve, as unemployment rises what happens to inflation? Why? 3) According to the AS/AD model, if AD increases what happens to Price Level, GDP & Unemployment? 4) According to the AS/AD model, if AD decreases what happens to Price Level, GDP & Unemployment? 5) According to the AS/AD model, if AS decreases what happens to Price Level, GDP & Unemployment? 6) Based on your answer to #5, how would you show the decrease in AS on the Phillips Curve? (Draw a curve and illustrate your answer.)