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The Relationship Between the AS-AD Model and the Phillips Curve

question 109

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The relationship between the AS-AD model and the Phillips curve points out that as aggregate demand increases,the unemployment rate

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Definitions:

Horizontal Tension

Refers to the stress acting parallel to the Earth's surface, which can cause stretching and fracturing of geological structures.

Vertical Tension

The force per unit area exerted in a vertical direction within a material, often relating to the stress experienced by geological or man-made structures.

Plunging Anticline

A fold in rock layers that slopes downward from the crest, usually indicating compression forces within the Earth's crust.

Asymmetric Anticline

A geological fold that is not symmetrical about its axis, indicating differential movement or deformation.

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