The Inverse Trade-Off Between Inflation and Unemployment Is Known as The

question 13

Multiple Choice

The inverse trade-off between inflation and unemployment is known as the:

• A)Laffer curve.
• B)aggregate supply curve.
• C)Phillips curve.
• D)aggregate demand curve.
• E)Keynesian curve.

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Definitions:

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Security Market Line

A line drawn on a graph that shows the relationship between risk and the expected return of the market, used in the capital asset pricing model to determine a security's risk premium.

APT

Arbitrage Pricing Theory, a multifactor model that describes the relationship between a financial asset's returns and its economic factors.

Market Portfolio

A theoretical bundle of investments that includes all types of assets available in the financial market, with each asset weighted according to its market capitalization.