A Rightward Shift of the Phillips Curve Suggests That

question 38

Multiple Choice

A rightward shift of the Phillips Curve suggests that:

• A)a higher rate of unemployment is associated with each inflation rate.
• B)a lower rate of unemployment is associated with each inflation rate.
• C)the aggregate supply curve has shifted to the right.
• D)the aggregate demand curve has shifted to the left.

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Definitions:

Liquidity

Refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price.

Price-earnings Ratio

The Price-earnings Ratio is a measure of a company's current share price relative to its per-share earnings, used to evaluate its valuation.

Market Price Per Share

The current value at which an individual share of a company can be bought or sold in the market.