In 2007 and 2008 Households and Firms Reduced Desired Expenditures

question 75

Multiple Choice

In 2007 and 2008 households and firms reduced desired expenditures.During the same period inflation fell and unemployment rose.

• A)The change in inflation,but not the change in unemployment is consistent with what a given short-run Phillips curve implies.
• B)The change in unemployment,but not the change in inflation is consistent with what a given short-run Phillips curve implies.
• C)Both the change in inflation and the change in unemployment are consistent with what a given short-run Phillips curve implies.
• D)Neither the change in inflation nor the change in unemployment are consistent with what a given short-run Phillips curve implies.

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Definitions:

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Signs, designs, or expressions that identify products or services of a particular source from those of others.

Primary Measurement

The initial quantification of financial transactions in terms of money, serving as the basis for further financial analysis and reporting.

Exit Price

The amount that would be received from selling an asset or transferred liability in an orderly transaction between market participants.

Entry Price

The price at which a security or asset was bought, affecting the calculation of gains and losses for accounting or tax purposes.