Possible Combinations of the Inflation Rate and the Unemployment Rate

question 94

Multiple Choice

Possible combinations of the inflation rate and the unemployment rate are shown on the _____

• A) Production Possibilities Frontier.
• B) Tobit model.
• C) Phillips Curve.
• D) Gordon's triangle model.
• E) Shapiro-Stiglitz theory.

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Definitions:

Price/Earnings

Also known as the P/E ratio, this measures a company's current share price relative to its per-share earnings.

Profit Margin

A financial metric expressing the percentage of income that remains as profit after all expenses, including taxes, are subtracted from total revenues.

Acid-Test

A financial metric that assesses a company's ability to pay its current liabilities with its quick assets (cash, marketable securities, and receivables).

Operating Segment

An operating segment is a component of a business that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity's chief operating decision maker.