Figure 16.1 -Refer to Figure 16.1. If the Natural Rate of Unemployment

question 111

Multiple Choice

Figure 16.1

-Refer to Figure 16.1. If the natural rate of unemployment is 5 percent, which of the following would cause a movement along Phillips curve III from point A to point B?

• A) An inward shift of the aggregate demand curve
• B) An outward shift of the aggregate demand curve
• C) A movement down the aggregate supply curve
• D) A movement down the aggregate demand curve
• E) A movement up the aggregate demand curve

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Definitions:

Open Account

A type of credit arrangement where goods and services are delivered with the understanding that payment will be made at a later date.

Interest-Bearing Note

A debt instrument in which the borrower promises to pay the lender a fixed amount of interest in addition to repaying the principal.

60-Day Note

Definition: A financial instrument, or promissory note, that requires the borrower to pay back the principal balance along with any interest in 60 days.

Maturity Value

The total amount payable to an investor at the end of a debt security's life, including both the principal and any accrued interest.