If the Short-Run Phillips Curve Has a Very Steep Slope

question 144

Multiple Choice

If the short-run Phillips curve has a very steep slope, the

• A)structural deficit will grow during inflation.
• B)structural deficit will fall during recession.
• C)inflation costs of reducing unemployment are relatively low.
• D)inflation costs of reducing unemployment are relatively high.

---

Definitions:

Unforeseen Shortage

A sudden and unexpected lack of necessary supplies or resources.

Recycled Metals

Metals that have been processed and reformed from previously used materials to reduce waste and environmental impact.

All-Weather

Designed to operate or remain usable in all types of weather conditions.

Communications System

The assembly of hardware, software, and protocols that enable the transmission of data, voice, and video between entities.