The Short-Run Phillips Curve Holds That

question 86

Multiple Choice

The short-run Phillips curve holds that

• A) high inflation and high unemployment can occur together.
• B) low inflation and low unemployment can occur together.
• C) high inflation and low unemployment can occur together.
• D) b and c

---

Definitions:

Gasoline

A volatile, flammable liquid derived from petroleum, primarily used as fuel in internal combustion engines.

Marginal Utility

The additional satisfaction or benefit (utility) that a person receives from consuming one more unit of a good or service.

Utils

A hypothetical unit of measurement used in economics to quantify utility or the satisfaction gained from consuming goods and services.

Indifference Curve

A contour line showing all consumption bundles that yield the same amount of total utility for an individual.