The Short-Run Phillips Curve Shows the Relationship Between

question 47

Multiple Choice

The short-run Phillips curve shows the relationship between

• A)the price level and real GDP in the short run.
• B)the price level and unemployment in the short run.
• C)unemployment and real GDP in the short run.
• D)inflation and unemployment, when inflation expectations can change.
• E)inflation and unemployment, when the expected inflation rate and the natural unemployment rate remain constant.

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Definitions:

Discount Rate

In discounted cash flow analysis, it's the rate of interest used to determine today's value of cash flows expected in the future.

Certainty Equivalent Approach

A method used in capital budgeting and investment finance that adjusts the future cash flows of risky investments to reflect their riskiness as compared to a certain cash flow.

Computer Simulation

Computer Simulation is a digital simulation of a real-world process or system over time, using computer software to study the behavior under various conditions.

Asset Management

The systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner.