The Phillips Phase of the Inflation-Unemployment Cycle Emerges Because

question 52

Multiple Choice

The Phillips phase of the inflation-unemployment cycle emerges because

• A)prices and wages are flexible.
• B)nominal wages and prices fall.
• C)of unanticipated increases in the price level produced by increases in aggregate demand.
• D)people are reluctant to spend despite expansionary policies pursued by policymakers.

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Definitions:

Bowman's Capsule

A part of the nephron in the kidney that encloses the glomerulus and where filtration of blood plasma begins in the process of urine formation.

Glomerulus

Cluster of leaky capillaries enclosed by a Bowman’s capsule.

Distal Tubule

Region of a kidney tubule that connects to a collecting tubule.

Proximal Tubule

Region of kidney tubule nearest Bowman’s capsule.