When It Was Introduced in 1958, the Phillips Curve Presented

question 18

Multiple Choice

When it was introduced in 1958, the Phillips curve presented policymakers with a "menu" from which they could choose the appropriate

• A) combination of monetary and fiscal policy.
• B) combination of inflation and unemployment.
• C) level of aggregate money supply.
• D) income tax rate.

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Definitions:

Government Purchases

All goods and services bought by the federal, state, and local governments.

National Debt

The total amount of money that a country's government has borrowed and not yet repaid.

Fiscal Policy

Government policy related to taxation and spending to influence the economy.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, visible in GDP, real income, employment, industrial production, and wholesale-retail sales.