The Short-Run Phillips Curve Shows That as the Unemployment Rate

question 115

Multiple Choice

The short-run Phillips curve shows that as the unemployment rate goes down,_____.

• A)unemployment benefit payments go up
• B)prices go down
• C)the Phillips curve shifts outward
• D)the inflation rate goes up
• E)there is no change in the rate of inflation

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Definitions:

Upshifts

The action or process of shifting a vehicle's transmission to a higher gear as speed or load increases.

Downshifts

The act of shifting a vehicle's transmission into a lower gear, increasing engine speed and providing more power or engine braking.

Governor Pressure

The hydraulic pressure in automatic transmissions that helps control gear shifts and is regulated by the vehicle's governor.

Transmission

A system in vehicles that transmits power from the engine to the drive axle, enabling the change of gears and varying the power and speed ratio.