The Phillips Curve Indicates That When the Labor Market Is

question 62

Multiple Choice

The Phillips curve indicates that when the labor market is ________,production costs will ________ and aggregate supply increases.

• A)easy;rise
• B)easy;fall
• C)tight;fall
• D)tight;rise

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Definitions:

Expenditures

Outflows of cash or other valuable assets from a person or company to pay for goods or services.

Encumbrances

Claims, liens, or charges on property or funds that affect or limit their use until the encumbrance is lifted.

Accounts Payable

Liabilities to creditors that are short-term financial obligations arising from purchasing goods or services on credit.

Accrual Basis

An accounting method that records income and expenses when they are earned or incurred, regardless of when the cash is actually received or paid.