If the Unemployment Rate Rises and the Inflation Rate Falls

question 31

Multiple Choice

If the unemployment rate rises and the inflation rate falls, while the natural unemployment rate and the expected inflation rate remain constant, then we are studying a movement along the

• A)long- run aggregate supply curve.
• B)aggregate demand curve.
• C)Friedman curve.
• D)short- run Phillips curve.
• E)Phelps- Friedman curve.

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Definitions:

Vestibule

An entrance or enclosed antechamber between the outside and the interior of a building or space.

Incus

A small anvil-shaped bone in the middle ear that, along with the malleus and stapes, helps transmit sound vibrations to the inner ear.

Stapes

The smallest bone in the human body, located in the middle ear, transmitting sound vibrations from the incus to the inner ear.

Malleus

A small bone in the middle ear that transmits sound vibrations from the eardrum to the incus; part of the auditory ossicles.