Consider the U

question 282

Multiple Choice

Consider the U.S. data for inflation and the unemployment rate for the last four decades. Which of the following statements describes the relationship between the two variables?

• A) Several different short- run Phillips curves representing different natural unemployment rates and different expected inflation rates existed.
• B) There is a positive relationship.
• C) The natural unemployment rate did not change but the expected inflation rate did change over these years.
• D) None of the above answers is correct.

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Definitions:

Common Stock

Equity ownership in a corporation, representing a share in its assets and earnings.

Dividends

Money disbursed to shareholders from a firm's profits as a profit share.

Salaries Expense

An account that records the total amount paid to employees for services performed during a specific period, excluding wages paid hourly.

Notes Payable

A formal written agreement to pay a specific amount of money on a certain date or upon demand to another party.