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.

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Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing corporation, reducing the number of shares outstanding in the market.

Gain On Sale

The profit realized from the sale of an asset, when the selling price exceeds its original purchase price.

Paid-In Capital

Paid-In Capital is the amount of money that shareholders have invested in a company through the purchase of stock, exclusive of earnings retained in the business.

Par Value

The nominal or face value of a bond, share of stock, or other securities, as stated by the issuing company.