The Basic Problem Portrayed by the Traditional Phillips Curve Is

question 116

Multiple Choice

The basic problem portrayed by the traditional Phillips Curve is

• A) that a level of aggregate demand sufficiently high to result in full employment may also cause inflation.
• B) that changes in the composition of total labor demand tend to be deflationary.
• C) that unemployment rises at the same time the general price level is rising.
• D) the possibility that automation will increase the level of noncyclical unemployment.

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Definitions:

Postindustrialism

A phase in economic development marked by a shift from manufacturing-based economies to those dominated by service-oriented, information-rich activities.

Education Importance

The significance attributed to acquiring knowledge and learning skills, seen as key to individual development, social progress, and economic growth.

Leisure Time

Free time that an individual can spend away from work, chores, and other obligations, often engaging in recreational activities.

Ascribed Status

A social position assigned at birth or involuntarily later in life, not based on achievements or abilities.