Based on the Work of Economist A

question 88

Multiple Choice

Based on the work of economist A.W. Phillips, economists concluded that

• A)there is no trade-off between inflation and unemployment.
• B)high inflation rates are associated with low unemployment rates.
• C)unemployment can be effectively combated by raising wages.
• D)higher rates of inflation are associated with higher rates of unemployment.

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Definitions:

Subsidiary

A company controlled by another company, known as the parent company, through the ownership of more than half of its voting stock.

Voting Stock

Refers to shares that give the holder the right to vote on corporate matters, such as electing the board of directors.

Controlling Influence

Refers to the power exercised by an entity or individual that holds a majority of voting rights in another business, allowing significant influence over its operations and decisions.

Long-term Investments

Investments made by a company intended to be held for a period exceeding one year, often in bonds, stocks, or real estate.