Each Point on a Phillips Curve Is a Different Combination

question 31

Multiple Choice

Each point on a Phillips curve is a different combination of

• A) aggregate output and the unemployment rate.
• B) the inflation rate and the unemployment rate.
• C) aggregate output and the inflation rate.
• D) saving and disposable income.

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Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to changes in sales volume, indicating the degree of fixed versus variable costs.

Percentage Change

A mathematical calculation that depicts the degree of change over time, usually expressed as a percentage.

Break-Even

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and one has "broken even."

Monthly

Pertaining to or calculated for a period of one month.