A Movement Along the SAS Curve That Brings a Lower

question 124

Multiple Choice

A movement along the SAS curve that brings a lower price level and a decrease in real GDP is equivalent to a

• A)movement along a short- run Phillips curve that brings an increase in the inflation rate and an increase in the unemployment rate.
• B)movement along a short- run Phillips curve that brings a decrease in the inflation rate and an increase in the unemployment rate.
• C)shift in the short- run Phillips curve that brings a decrease in the inflation rate and an increase in the unemployment rate.
• D)shift in the short- run Phillips curve that brings an increase in the inflation rate and an increase in the unemployment rate.

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Definitions:

Cramer's Rule

A mathematical theorem used to solve systems of linear equations with the same number of equations as unknowns, using determinants.

System of Linear Equations

A group of one or more linear equations that share a common set of variables.

Row-echelon Form

A form of a matrix where all nonzero rows are above any rows of all zeroes, and each leading entry of a row is to the right of the leading entry of the previous row.

Matrix

A rectangular array of numbers, symbols, or expressions, arranged in rows and columns, used in linear algebra.