The Shift Outward in the Phillips Curve in the 1970s

question 211

Multiple Choice

The shift outward in the Phillips curve in the 1970s was caused by the

• A) oil supply shocks of the mid-1970s and the rise in inflationary expectations.
• B) fall in the unemployment rate.
• C) fall in the inflation rate.
• D) rise in the trade deficit.

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Definitions:

Transferors Own 80%

A situation in a business transaction where the original owners or transferors retain an 80% ownership interest in the property or entity after the transaction is completed.

Tax-Free

Earnings, income, or transactions that are not subject to tax by the government.

Incorporation

The process of legally constituting a company or corporation, offering protection to owners from personal liability for the company's debts and obligations.

Capital Loss Carryforward

A provision allowing taxpayers to use a net capital loss in one year to offset a net capital gain in future years, subject to limitations.