According to the Simple Phillips Curve, in the Short Run

question 17

Multiple Choice

According to the simple Phillips curve, in the short run, if unemployment decreases, then:

• A) inflation rises.
• B) inflation drops.
• C) interest rates rise.
• D) interest rates drop.

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Definitions:

Lead Times

The amount of time that passes from the initiation of a process to its completion.

Value-Added

The increase in worth of a product or service as a result of a particular process.

Lean Philosophy

A management approach focusing on minimizing waste and maximizing value in processes by considering customer value as the primary goal.

Necessary Buffer

A strategic reserve or margin of safety to mitigate risk or unforeseen circumstances, ensuring stability and continuity.