A Country Reports That Its Inflation Rate and Unemployment Rate

question 10

Multiple Choice

A country reports that its inflation rate and unemployment rate have both increased. These changes could be the result of

• A) a movement downward along the short-run Phillips curve.
• B) a leftward shift of the long-run Phillips curve.
• C) a downward shift of the short-run Phillips curve.
• D) a movement upward along the short-run Phillips curve.
• E) an upward shift of the short-run Phillips curve.

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Definitions:

My Lai

A village in Vietnam where a mass murder was carried out by U.S. Army soldiers in 1968 during the Vietnam War.

Village

A small community or group of houses in a rural area, larger than a hamlet but smaller than a town, often with a single economy.

Pentagon Papers

A top-secret Department of Defense study of U.S. political and military involvement in Vietnam from 1945 to 1967, leaked to the public in 1971.

Significance

The importance, meaning, or impact of something, particularly in terms of its influence or consequences in a broader context.