The Figure Given Below Shows the Phillips Curves of the U.S

question 23

Multiple Choice

The figure given below shows the Phillips curves of the U.S. economy during early 1960s to late 1970s.?Figure 14.2

-Refer to Figure 14.2. Following the movement from point A to point B on Phillips curve III, what would cause the Phillips curve to shift up so that 5 percent unemployment is associated with 10 percent inflation?

• A) An upward movement along the aggregate supply curve
• B) A downward movement along the aggregate supply curve
• C) A downward movement along the aggregate demand curve
• D) An outward shift of the aggregate supply curve
• E) An inward shift of the aggregate supply curve

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Definitions:

Rational Self-Interest

A theory that suggests individuals always make decisions that they perceive to be in their own best interest.

Pure Selfishness

an ethical or philosophical perspective prioritizing self-interest or personal gain above the welfare of others.

Charitable Contributions

Money or goods given to organizations for the purpose of helping people or supporting societal, educational, religious, or other charitable activities.

Favorable Tax Treatment

Tax policies or provisions that reduce the tax burden on certain activities, income types, or investments to encourage their growth or stability.