According to the Short-Run Phillips Curve, Which of the Following

question 136

Multiple Choice

According to the short-run Phillips curve, which of the following would result in high rates of unemployment?

• A)strong increases in short-run aggregate supply
• B)a lower inflation rate
• C)strong increases in aggregate demand
• D)a higher inflation rate
• E)strong increases in long-run aggregate supply

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Definitions:

Tax

A compulsory financial charge or levy imposed by a government on individuals or entities to fund government spending and various public expenditures.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good supplied.

Vertical

Referring to the direction pointing up or down, perpendicular to the horizontal plane.

Inverse Demand Function

A mathematical function that expresses price as a function of quantity demanded, showing the price at which consumers are willing to purchase a certain quantity of a good.