According to the Simple Phillips Curve, in the Short Run

question 31

Multiple Choice

According to the simple Phillips curve, in the short run, if inflation rises, then:

• A) the Federal Reserve will increase the money supply.
• B) unemployment will drop.
• C) unemployment will rise.
• D) the economy will stop growing.

---

Definitions:

Desired Performance

The expected or targeted level of output or efficiency from a process, employee, or system.

Control Equation

A conceptual framework or formula used to manage and regulate processes or systems to ensure desired outcomes are achieved.

Desired Performance

The level of operational or task achievement that an organization or individual aims to reach.

Actual Performance

The real, observed output or results of an individual’s or team’s work activities, as opposed to expected or theoretical performance.