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

question 133

Multiple Choice

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

• A) an increase in government spending and a fall in unemployment
• B) an increase in inflation and a decrease in output
• C) a decrease in the inflation rate and a rise in the unemployment rate
• D) a decrease in output and an increase in unemployment

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Definitions:

Journal Entry

A record in bookkeeping that logs the debit and credit aspects of a financial transaction.

Retained Earnings

The portion of a business's profits not distributed to shareholders, reinvested in the business instead.

Push-down Accounting

An accounting method applied in business combinations where the purchase price of an acquired entity is reflected in the financial statements of the acquired company.

Business Combination

A transaction or event in which two or more businesses come together to form a single reporting entity, typically involving the acquisition of one by another.