Moving Along the Short-Run Phillips Curve Indicates

question 80

Multiple Choice

Moving along the short-run Phillips curve indicates

• A) that higher inflation leads to a higher unemployment rate.
• B) a tradeoff between inflation and unemployment so that higher inflation is related to lower unemployment.
• C) that higher unemployment leads to a higher inflation rate.
• D) that the natural unemployment rate falls when the inflation rate rises.

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Definitions:

Zero Growth Stock

A stock from a company which is expected to see no growth in dividends or earnings, typically offering high initial dividend yields.

Annual Dividend

The total amount of dividends that a company pays out to its shareholders over a single fiscal year.

Required Rate of Return

The minimum return that investors expect to earn from their investment in a particular asset, considering the risk associated with it.

Dividend

A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.