The Analysis of the Short-Run and Long-Run Phillips Curve Suggests

question 24

Multiple Choice

The analysis of the short-run and long-run Phillips Curve suggests that an increase in aggregate demand

• A) influences real output and employment in the long run, but not in the short run.
• B) influences real output and employment in the short run, but not in the long run.
• C) does not influence the price level in the short run or the long run but only real output and employment.
• D) does not influence real output and employment in the short run or the long run but only the price level.

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Definitions:

Adolescence

The transitional stage of physical and psychological development that occurs between childhood and adulthood.

Late Adulthood

The stage in human development characterized by advanced age, usually considered to begin around the age of 65.

Identity

The fact of being who or what a person or thing is; the characteristics determining this.

Integrity

A moral principle that involves being honest and having strong moral uprightness.