Comparing the Aggregate Supply Curve and the Short-Run Phillips Curve

question 63

Multiple Choice

Comparing the aggregate supply curve and the short-run Phillips curve, we see that they

• A) each describe different parts of the economy.
• B) both exist since money wages are flexible.
• C) describe the same phenomena but contradict each other.
• D) both exist because money wage rates are fixed in the short run.
• E) both exist because real wage rates are fixed in the short run.

---

Definitions:

Common Currency

A currency that is used by multiple countries, facilitating easier trade and financial transactions across national borders.

Member Countries

Countries that are official participants or members of an international organization or agreement.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, committed to regional integration through common laws and policies.

Common Currency

A monetary system in which multiple countries or entities use the same currency, facilitating trade and economic integration among them.