The Origin of the Phillips Curve Is the Idea That

question 162

Multiple Choice

The origin of the Phillips curve is the idea that an increase in

• A)AD will lead to more inflation and more unemployment.
• B)AD will lead to more inflation and lower unemployment.
• C)AS will lead to lower inflation and lower unemployment.
• D)AS will lead to less inflation and higher unemployment.

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Definitions:

Hypothesis

Testable statement about two or more variables and the relationship between them.

Scientific Method

A systematic approach to research where a problem is identified, relevant data are gathered, a hypothesis is formulated from the data, and the hypothesis is empirically tested.

Generate a Hypothesis

The process of formulating a testable statement or prediction based on observations and theoretical insights.

Draw Conclusions

The process of analyzing the results of a study or data to form a judgment or insight about the hypothesis or research question.