One Way of Expressing the Concept of the Short-Run Phillips

question 62

Multiple Choice

One way of expressing the concept of the short-run Phillips curve is to say that:

• A)the cost of reducing unemployment is higher inflation.
• B)nothing but good comes from reducing unemployment.
• C)the cost of reducing inflation is lower unemployment.
• D)aggregate supply and aggregate demand will always be equal at the potential output level.
• E)the best economic policy is one that attempts to make the rate of inflation equal to the rate of unemployment.

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Definitions:

Sampling Distribution

The probability distribution of a given random-sample-based statistic.

Sampling Distribution

A statistical distribution of all possible samples of a given size taken from a population.

Standard Deviation

A calculation that determines the amount of fluctuation or spread in a set of numbers.

Sampling Distribution

The probability distribution of a statistic (e.g., the mean) obtained from a large number of samples drawn from a specific population.