The Phillips Curve Shows the Relationship Between

question 20

Multiple Choice

The Phillips curve shows the relationship between:

• A) the unemployment rate and the level of real income.
• B) the in?ation rate and the level of aggregate demand.
• C) the rate of change in the price level and the unemployment rate.
• D) the wage rate and the level of unemployment.

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Definitions:

Thalamus

A vital brain structure acting as a relay station, channeling sensory and motor signals to and from the cerebral cortex.

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood. It controls basic emotions and drives.

Hippocampus

A neural center that is located in the limbic system; helps process explicit memories for storage.

Cerebellum

The “little brain” at the rear of the brainstem; functions include some nonverbal learning, processing sensory input, and coordinating movement output and balance.