The Short-Run Phillips Curve Shows That _____

question 82

Multiple Choice

The short-run Phillips curve shows that _____

• A) the economy can have low inflation and low unemployment simultaneously.
• B) the economy can have high per-capita income and a high interest rate simultaneously.
• C) a reduction in per-capita income comes at the expense of lower inflation.
• D) a reduction in unemployment comes at the expense of higher inflation.
• E) a reduction in inflation comes at the expense of lower exchange rate.