The Short-Run Phillips Curve Shows a

question 270

Multiple Choice

The short-run Phillips curve shows a

• A) positive relationship between the quantity of money and interest rates.
• B) positive relationship between the price level and real GDP.
• C) negative relationship between interest rates and the price level.
• D) negative relationship between the unemployment rate and the inflation rate.

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Definitions:

Cognitive Dissonance

The uneasy feeling that arises in someone when they possess multiple conflicting beliefs, ideas, or values simultaneously.

Foot-In-The-Door

A psychological technique that involves getting a person to agree to a large request by first setting them up by agreeing to a modest request.

Fundamental Attribution Error

The tendency to overestimate personality or dispositional factors and underestimate situational influences when explaining the behavior of others.

Slacking Off

The act of reducing effort or avoiding work altogether.