The Problem Portrayed by the Short-Run Phillips Curve Is That

question 170

Multiple Choice

The problem portrayed by the short-run Phillips curve is that:

• A)unemployment tends to increase when prices are rising.
• B)changes in the composition of the labor force tend to increase the natural rate of unemployment.
• C)inflation tends to increase when unemployment falls.
• D)stagflation is unavoidable.

---

Definitions:

Diminishing Marginal Utility

This refers to the economic principle that as a person increases consumption of a product, there is a decline in the marginal benefit that person gains from consuming each additional unit of that product.

New Features

New features refer to additional or enhanced attributes introduced to a product or service to improve its functionality or appeal.

iPads

A line of tablet computers designed, developed, and marketed by Apple Inc., which run the iOS and iPadOS mobile operating systems.

Total Utility

The complete satisfaction obtained from consuming a certain quantity of goods or services.