During the 1970s When Both the Unemployment Rate and Inflation

question 229

Multiple Choice

During the 1970s when both the unemployment rate and inflation rate rose, it is reasonable to conclude that

• A) only the short- run Phillips curve shifted.
• B) only the long- run Phillips curve shifted.
• C) both the short- run and long- run Phillips curves shifted rightward.
• D) both the short- run and long- run Phillips curves shifted leftward.

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Definitions:

Classified Balance Sheet

A balance sheet that organizes assets and liabilities into categories such as current, fixed, and intangible assets, and current and long-term liabilities.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle, such as accounts payable and short-term loans.

Long-term Liabilities

Debts or obligations that are due to be paid or settled beyond one year or the normal operating cycle of a business.

Current Ratio

A financial metric used to evaluate a company's ability to pay short-term obligations with its short-term assets.