The Price Level in the Economy Between 2016 and 2017

question 247

Multiple Choice

The price level in the economy between 2016 and 2017 rose from 100 to 110.Between 2017 and 2018,the price level rose from 110 to 121.How does the short-run Phillips curve predict the unemployment rate will change as a result?

• A)The unemployment rate will decrease since inflation decreased.
• B)The unemployment rate will decrease since inflation increased.
• C)The unemployment rate will increase since inflation increased.
• D)The unemployment rate will not change since there is no change in the rate of inflation.

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Definitions:

Potlatch

On the northwestern coast of North America, a ceremonial event in which a village chief publicly gives away stockpiled food and other goods that signify wealth.

Conspicuous Consumption

The spending of money on luxury goods and services to publicly display economic power—the social status of the consumer.

Ecological Adaptive

The process by which organisms adjust to changes in their environment to maintain or improve their survival prospects.

Domesticated

Refers to animals or plants that have been modified from their natural states to be of use to humans through selective breeding.