The Basic Problem Portrayed by the Phillips Curve Is

question 96

Multiple Choice

The basic problem portrayed by the Phillips Curve is:

• A)that a level of aggregate demand sufficiently high to result in full employment may also cause inflation.
• B)that changes in the composition of total labor demand tend to be deflationary.
• C)that unemployment rises at the same time the general price level is rising.
• D)the possibility that automation will increase the level of noncyclical unemployment.

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Definitions:

Questionnaire

A research instrument consisting of a series of questions for the purpose of gathering information from respondents.

Internal Consistency

The degree of reliability within a test—the extent to which different parts of the same test yield the same results.

Split-Half Reliability

A measure of internal consistency, often ascertained by comparing responses on odd-numbered test items with responses on even-numbered test items and seeing if the scores for these responses are correlated.

Coefficient Alpha

A method for evaluating internal consistency, calculated by averaging the intercorrelations of all the items on a given test. The higher the coefficient alpha, the higher the internal consistency.