Moving Along a Short-Run Phillips Curve, a Reduction in the Unemployment

question 24

Multiple Choice

Moving along a short-run Phillips curve, a reduction in the unemployment rate is achieved by

• A) shifting the aggregate supply curve leftward.
• B) running a federal budget deficit.
• C) reducing the size of the labor force.
• D) increasing the inflation rate.
• E) increasing potential GDP.

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Definitions:

Changes In Retained Earnings

Modifications in the accumulated net income of a company that are not distributed to shareholders as dividends.

Statement Of Cash Flows

A financial report detailing the inflows and outflows of cash within a company during a specific period, indicating its operating, investing, and financing activities.

Multiple-step

An income statement format that separates operational revenues and expenses from non-operational ones, providing a detailed view of financial performance.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial position, listing assets, liabilities, and equity at a specific point in time.