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.

---

Definitions:

Price Skimming

A pricing strategy involving setting high prices at the launch of a new product to maximize profits from customers willing to pay more, before reducing the price over time.

Consumer Credit

Credit extended by retailers to the ultimate customers for the purchase of products or services.

Business Credit

A measure of a company's ability to obtain goods, services, or funds based on the promise to pay in the future.

Trade Credit

The purchase of goods from suppliers that do not demand payment immediately.