The Origin of the Phillips Curve Is the Idea That

question 162

Multiple Choice

The origin of the Phillips curve is the idea that an increase in

• A)AD will lead to more inflation and more unemployment.
• B)AD will lead to more inflation and lower unemployment.
• C)AS will lead to lower inflation and lower unemployment.
• D)AS will lead to less inflation and higher unemployment.

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Definitions:

Cash Payments

Financial transactions involving the transfer of currency or check from buyer to seller without the use of credit.

Dependent Child

A child who meets certain IRS criteria allowing a taxpayer to claim them for tax benefits.

Self-Employment Tax

A financial obligation made up of Social Security and Medicare fees, chiefly for people who are in self-employment.

AGI Deduction

Adjustments made to gross income to calculate the adjusted gross income (AGI), which can include contributions to retirement accounts, student loan interest, and other eligible deductions.