Based on the Phillips Curve, Unexpected Movements in Inflation Are

question 38

Multiple Choice

Based on the Phillips curve, unexpected movements in inflation are related to ______, and based on the short-run aggregate supply curve, unexpected movements in the price level are related to ______.

• A) sticky wages; sticky prices
• B) sticky prices; sticky wages
• C) output; unemployment
• D) unemployment; output

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Definitions:

Individual Investors

Private investors who buy and sell securities for their personal account, not on behalf of an organization.

Selling Groups

A consortium of financial institutions or broker-dealers who work together to sell a large issuance of securities, such as bonds or stocks, to the public.

Average Spread

The average spread refers to the average difference between bid and ask prices over a specified time period, measuring market liquidity.

Security Issues

Security Issues refer to the new issuance of stocks or bonds by a company in order to raise capital from investors in the public or private markets.