The Price Level in the Economy Between 2009 and 2010

question 82

Multiple Choice

The price level in the economy between 2009 and 2010 rose from 100 to 105.Between 2010 and 2011,the price level rose from 105 to 110.25.How does the short-run Phillips curve predict the unemployment rate will change as a result?

• A) The unemployment rate will decrease since inflation decreased.
• B) The unemployment rate will decrease since inflation increased.
• C) The unemployment rate will increase since inflation increased.
• D) The unemployment rate would not change since there is no change in the rate of inflation.

---

Definitions:

Land

The surface of the earth, considered as property and a basis for real estate transactions.

Successful-efforts Method

An accounting approach used in the oil and gas industry to capitalize only those costs associated with successfully locating new oil and natural gas reserves.

Full-cost Method

An accounting practice where all direct and indirect costs of producing an asset are capitalized and then amortized over time.

IFRS

IFRS stands for International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally recognized for preparing financial statements.