In the Short Run, If the Economy Is in the Phillips

question 81

Multiple Choice

In the short run, if the economy is in the Phillips phase of the inflation-unemployment cycle, An increase in aggregate demand will generate

• A)an increase in the price level and an increase in the unemployment rate.
• B)an increase in the price level and a decrease in the unemployment rate.
• C)an increase in the price level and no change in the unemployment rate.
• D)a decrease in the price level and an increase in the unemployment rate.

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Definitions:

Posting Process

The procedure of transferring journal entry amounts to their respective accounts in the ledger.

Debit Posted

An accounting entry that increases an asset or expense account, or decreases a liability or equity account, reflected on the left side of an account.

Credit Posted

The process of recording a credit transaction in the accounting records, indicating an increase in liabilities or a decrease in assets.

General Ledger

The primary accounting record of a company that uses double-entry bookkeeping, summarizing all transactions.