Moving Along a Short-Run Phillips Curve, a Reduction in the Unemployment

question 85

Multiple Choice

Moving along a short-run Phillips curve, a reduction in the unemployment rate is achieved by

• A)reducing the size of the labor force.
• B)running a federal budget deficit.
• C)increasing the inflation rate.
• D)shifting the aggregate supply curve leftward.
• E)increasing potential GDP.

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Definitions:

Fair Market Value

The price at which an asset would change hands between a willing buyer and a willing seller, both having reasonable knowledge of all the relevant facts.

Provincial Bonds

Provincial bonds are debt securities issued by a provincial government in Canada to finance its expenditures and obligations.

Ordinary Annuity

A series of equal payments made at equal intervals of time, such as monthly or annually.

Residential Building Lot

A plot of land designated for the construction of a residential home.