Which of the Following Best Describes the Original Phillips Curve

question 59

Multiple Choice

Which of the following best describes the original Phillips curve?

• A)In the original Phillips curve,the inflation expectation is constant.
• B)In the original Phillips curve,the inflation expectation is not constant.
• C)In the original Phillips curve,the natural rate of unemployment is constant.
• D)Both A and C are correct.

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Definitions:

Economic Profit

The difference between the total revenue earned by a firm and the total cost of inputs, including both explicit and implicit costs.

Implicit Costs

The opportunity costs of utilizing resources owned by the firm that could have been employed for other purposes.

Explicit Costs

Direct, out-of-pocket payments for resources employed in the production of goods or services, easily identified and measured.

Capital Intensive

A description of industries or businesses that require large amounts of capital investment compared to labor.