The Short-Run Phillips Curve Shows

question 19

Multiple Choice

The short-run Phillips curve shows

• A)potential GDP.
• B)the expected inflation rate.
• C)a tradeoff between real GDP and unemployment.
• D)a tradeoff between the unemployment rate and the inflation rate.
• E)the natural unemployment rate.

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Definitions:

Subsidy

Financial assistance provided by the government or a public body to support businesses, reduce prices, or encourage a particular economic activity.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to produce and sell.

Subsidy

A form of financial aid or support extended to an economic sector, typically by the government, to promote beneficial economic activities.