Each Point on a Phillips Curve Is a Different Combination

question 31

Multiple Choice

Each point on a Phillips curve is a different combination of

• A) aggregate output and the unemployment rate.
• B) the inflation rate and the unemployment rate.
• C) aggregate output and the inflation rate.
• D) saving and disposable income.

---

Definitions:

Interest Rate

The percentage charged on the total amount of borrowed money or paid on deposited funds over a specific period.

Investment Project

A project involving the commitment of resources with the expectation of generating future returns or benefits.

Market Price

This term refers to the actual selling price of goods or services in the marketplace at any given time.

Future Net Earnings

The projected amount of money that a company is expected to earn in the future after all expenses and taxes have been deducted.