Which of the Following Best Explains the Negative Slope of the Short-Run

question 160

Multiple Choice

Which of the following best explains the negative slope of the short-run Phillips curve?

• A)Weak growth in aggregate demand keeps the economy below potential GDP,so unemployment rises but inflation falls.
• B)Aggregate demand grows so quickly that the inflation rate rises as unemployment rises.
• C)Long-run aggregate supply increases quickly enough that inflation falls as unemployment also falls.
• D)Short-run aggregate supply increases at the same pace as aggregate demand increases so that inflation and unemployment do not change.

Interpret statistical analysis reporting and its implications on the null hypothesis.

Accurately report the level of significance based on the value of a statistic and critical values.

Understand the concept and types of organizational-level incentive plans.

Identify circumstances where group incentives and competition are beneficial.