Where Does the Short-Run Phillips Curve Intersect the Long-Run Phillips

question 181

Multiple Choice

Where does the short-run Phillips curve intersect the long-run Phillips curve?

• A) where expected inflation is greater than actual inflation
• B) where expected inflation equals actual inflation
• C) where the quantity of goods and services demanded equals the quantity supplied
• D) where the quantity of labour demanded equals the quantity supplied

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Definitions:

Producers Worse Off

A situation where producers face decreased profitability or increased costs due to economic changes.

Consumers Better Off

A situation where individuals experience an improvement in their welfare or satisfaction, often through lower prices or higher quality goods and services.

Domestic Price

The price of a good or service within a country’s borders, which can differ from its price in the international market due to tariffs, taxes, and supply and demand conditions.

World Price

The global market price at which goods and services are bought and sold, influencing international trade dynamics.