If the Short-Run Phillips Curve Were Stable, Which of the Following

question 122

Multiple Choice

If the short-run Phillips curve were stable, which of the following would be unusual?

• A)an increase in inflation and an increase in output
• B)a decrease in inflation and an increase in unemployment
• C)an increase in both inflation and unemployment
• D)an increase in output and a decrease in unemployment

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Definitions:

Government Intervention

Actions taken by a government to influence or directly regulate the economy, markets, or specific industries, often to correct market failures or promote social welfare.

Excess Demand

Occurs when the quantity demanded of a good or service at a given price exceeds the quantity supplied, often leading to a shortage in the market.

Price Of Burritos

The cost consumers pay to purchase a burrito, which can vary based on ingredients, location, and restaurant type.

Demand Shifts

Changes in the desire or need for a product or service, influenced by factors such as price, consumer preferences, and income levels.