The Phillips Curve Describes the Relationship Between Which Two Variables

question 41

Multiple Choice

The Phillips curve describes the relationship between which two variables?

• A)aggregate expenditure and aggregate demand
• B)the money supply and interest rates
• C)unemployment and the rate of change of wages
• D)inflation and interest rates
• E)the output gap and potential GDP

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Definitions:

Retained Earnings

Profits that have been reinvested in the company rather than distributed to stockholders as dividends.

Fiscal Year

A twelve-month period chosen for accounting purposes and financial reporting, which may or may not align with the calendar year.

Treasury Stock

Shares that were issued and subsequently reacquired by the corporation, reducing the amount of outstanding stock on the open market.

Par Common Stock

Shares of common stock issued with a nominal or face value, which is distinct from their market value.