One Way of Expressing the Meaning of the Short-Run Phillips

question 49

Multiple Choice

One way of expressing the meaning of the short-run Phillips curve is to say that

• A)the cost of reducing unemployment is higher inflation
• B)nothing but good comes from reducing unemployment
• C)the cost of reducing inflation is lower unemployment
• D)aggregate supply and aggregate demand will always be equal at the potential output level
• E)the best economic policy is one that attempts to make the rate of inflation equal to the rate of unemployment

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Definitions:

Maturational Loss

The grief associated with naturally occurring changes across the lifespan, such as aging or children leaving home.

Depressed

Experiencing a persistent feeling of sadness, hopelessness, and a lack of interest or pleasure in activities, often a symptom of depression.

Actual

Existing currently, based on facts or reality.

Situational

Related to or dependent on a set of circumstances or the context in which an event occurs.