Changes in Which of the Following Shift the Short-Run Phillips

question 164

Multiple Choice

Changes in which of the following shift the short-run Phillips curve?
i. Changes in the natural unemployment rate
ii. changes in the expected inflation rate
iii. changes in the inflation rate

• A) i only
• B) ii only
• C) iii only
• D) i and ii
• E) i, ii, and iii

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, typically comprising the balance sheet, income statement, and cash flow statement.

Compensating Balances

Minimum balance requirements imposed by banks on certain accounts, which businesses must maintain in order to receive some form of credit or service.

Prompt Payment Discounts

Incentives provided by sellers to encourage buyers to pay their invoices early.

Quantity Discounts

Price reductions offered to buyers purchasing in large volumes.