Suppose the Unemployment Rate Goes Down

question 40

Multiple Choice

Suppose the unemployment rate goes down.According to the short-run Phillips curve, what will happen to the inflation rate?  

• A) The inflation rate will go up. 
• B) The inflation rate will go down. 
• C) The inflation rate will NOT change. 
• D) The inflation rate will become a deflation rate.

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Definitions:

Separate

refers to dividing or causing to divide into parts or elements.

Blood Calcium Levels

The concentration of calcium ions in the blood, essential for various bodily functions including bone formation, blood clotting, and muscle contraction.

Osteoclast Activity

Biological processes involving osteoclast cells, which break down bone tissue, facilitating bone resorption and remodeling.

Calcitonin

A hormone produced by the thyroid gland that helps regulate calcium levels in the blood by inhibiting osteoclast activity.