Comparing the AS-AD Model and the Phillips Curve, We See

question 62

Multiple Choice

Comparing the AS-AD model and the Phillips curve, we see that

• A)the Phillips curve is graphed as a relationship between the price level and the unemployment rate.
• B)the AS-AD model uses the price level and the Phillips curve uses the rate of inflation.
• C)the AS-AD model is graphed as a relationship between the inflation rate and the rate of real GDP.
• D)the AS-AD model uses the price level and the Phillips curve uses real GDP.
• E)they both are graphed as a relationship between the rate of inflation and the unemployment rate.

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together, without necessarily implying causation.

Scientific Goals

Objectives or aims of scientific research, which typically include description, explanation, prediction, and control of phenomena.

Placebo Effect

A phenomenon in which a patient experiences a perceptible improvement in their health or well-being after receiving a treatment that has no therapeutic effect.

Subliminal Messages

Messages that are designed to pass below the normal limits of perception.