According to the Phillips Curve, Other Things Being Equal, Inflation

question 16

Multiple Choice

According to the Phillips curve, other things being equal, inflation depends positively on all of the following except:

• A)expected inflation.
• B)the unemployment rate.
• C)the natural unemployment rate.
• D)a supply shock, if one occurs.

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Definitions:

Federal Income Tax

The tax levied by the national government on individual or corporate income.

Allowances

Amounts deducted from an employee's gross pay for specific purposes such as taxes, health insurance, and retirement funds.

Overtime Rate

The rate of pay that is higher than the regular hourly rate, paid to employees for hours worked beyond the standard workweek.

Gross Pay

The total amount of salary or wages earned by an employee before any deductions are taken for taxes, social security, etc.