The Short-Run Phillips Curve Tradeoff Becomes Less Favorable If Either

question 105

Multiple Choice

The short-run Phillips curve tradeoff becomes less favorable if either

• A)potential GDP or the natural unemployment rate increases.
• B)the level of real GDP decreases or the natural unemployment rate decreases.
• C)the expected inflation rate or the natural unemployment rate increases.
• D)the expected inflation rate increases or the natural unemployment rate decreases.
• E)potential GDP or the natural unemployment rate decreases.

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Definitions:

Time-Driven Activity Rate

An accounting method that assigns costs to products based on the time resources are consumed in producing the product.

Second-Stage Allocation

The process by which activity rates are used to apply costs to products and customers in activity-based costing.

Activity-Based Costing

A costing methodology that assigns expenses to products and services based on the resources they consume.

Overhead Costs

Indirect costs not directly traceable to a specific product or job, including expenses such as rent, utilities, and management salaries.