In the Short Run, If the Economy Is in a Phillips

question 117

Multiple Choice

In the short run, if the economy is in a Phillips phase of the inflation-unemployment relationship, an increase in aggregate demand will generate

• A) an increase in the price level and an increase in the unemployment rate.
• B) an increase in the price level and a decrease in the unemployment rate.
• C) an increase in the price level and no change in the unemployment rate.
• D) a decrease in the price level and an increase in the unemployment rate.

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Definitions:

Esophageal

Pertaining to the esophagus, which is the muscular tube that connects the throat (pharynx) with the stomach.

Endometrial

Pertaining to or involving the endometrium, which is the mucous membrane lining the uterus.

Colorectal

Pertaining to the colon and rectum. It is often used in the context of diseases, disorders, and treatments affecting these parts of the digestive system.

Obese

A medical condition in which excess body fat has accumulated to an extent that it may have a negative effect on health, leading to increased health problems and reduced life expectancy.