The Short-Run Phillips Curve Is

question 45

Multiple Choice

The short-run Phillips curve is

• A) downward sloping.
• B) upward sloping.
• C) vertical at a constant rate of unemployment.
• D) horizontal at a constant rate of inflation.
• E) U-shaped.

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Definitions:

Inputs

Assets like work, supplies, and funds that are utilized in the manufacturing process to produce products and services.

Production Possibility Frontier

A curve depicting the maximum attainable combinations of two or more products that a business can produce with limited resources.

Capital Goods

Long-lasting goods, such as equipment or buildings, used to produce other goods or services.

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their needs or wants.