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

question 109

Multiple Choice

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

• A)increases and the inflation rate rises.
• B)decreases and the price level falls.
• C)decreases and the inflation rate rises.
• D)decreases and the inflation rate does not change,only the price level rises.
• E)increases and the inflation rate falls.

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Definitions:

Model Minority

The model minority is a stereotype applied to a demographic group (often Asian Americans) perceived as achieving a higher degree of socioeconomic success than the population average, which can mask challenges and disparities within the group.

Racist Practice

Actions or policies that perpetuate discrimination or prejudice against people based on their race.

Subgroups

Smaller, distinct segments or categories within a larger group or category, often defined by specific characteristics.

Guilt and Shame

Emotional responses to perceptions of wrongdoing or inadequacy, with guilt relating to actions taken and shame to the self.