Which of the Following Describes the Distinction Between the Phillips

question 47

Multiple Choice

Which of the following describes the distinction between the Phillips curve and the AS curve?

• A)The AS curve has the price level on the vertical axis whereas the Phillips curve has the interest rate on the vertical axis.
• B)The AS curve has the price level on the vertical axis whereas the Phillips curve has the rate of change in the interest rate on the vertical axis.
• C)The AS curve has the price level on the vertical axis whereas the Phillips curve has the rate of wage changes on the vertical axis.
• D)The AS curve has the rate of price inflation on the vertical axis whereas the Phillips curve has the rate of wage changes on the vertical axis.
• E)There is no distinction: the two curves are essentially the same thing.

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Definitions:

Business Combination Valuation Reserve

A reserve account used in accounting for the difference between the fair value of net assets of the acquired business and the purchase price.

Company Tax Rate

The percentage of its profits a corporation is required to pay as tax to the government.

Pre-acquisition Equity

The portion of equity interest in an acquiree that the acquirer held before obtaining control of the acquiree.

Fair Value Adjustments

Adjustments made to the reported value of an asset or liability to reflect its current market value rather than its book value.