A Typical Supply Curve Has

question 296

Multiple Choice

A typical supply curve has

• A)slope equal to zero.
• B)slope equal to infinity.
• C)negative slope.
• D)positive slope.
• E)constant slope.

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Definitions:

Contractionary Monetary Policy

A monetary policy strategy used by central banks to reduce inflation and cool an overheated economy by raising interest rates or increasing reserve requirements.

Inflation

The frequency at which the all-encompassing costs of goods and services heighten, eroding financial purchasing capability.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for work.

Phillips Curve

An economic concept that depicts an inverse relationship between the rate of unemployment and the rate of inflation.