If the Short-Run Phillips Curve Were Stable, What Would Be

question 182

Multiple Choice

If the short-run Phillips curve were stable, what would be unusual?

• A) an increase in inflation and an increase in output
• B) a decrease in inflation and an increase in unemployment
• C) an increase in both inflation and unemployment
• D) an increase in output and a decrease in unemployment

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Definitions:

Foot-In-The-Door

A persuasion technique where a small request is made first in order to gain compliance for a larger request later.

Door-In-The-Face

A technique in persuasion that involves making a large request that is likely to be refused in order to increase the chances that a person will agree to a smaller request later.

Lowballing

A strategy where an initially favorable offer is made, only to have the terms made less favorable after acceptance.

Obedience

When a person follows the orders of a person in authority.