If the Short-Run Phillips Curve Were Stable, Which of the Following

question 122

Multiple Choice

If the short-run Phillips curve were stable, which of the following would be unusual?

• A)an increase in inflation and an increase in output
• B)a decrease in inflation and an increase in unemployment
• C)an increase in both inflation and unemployment
• D)an increase in output and a decrease in unemployment

---

Definitions:

Wholesale Price

The cost of goods sold in bulk to retailers or distributors, generally lower than retail price.

Seal

A device or symbol used to authenticate documents as genuine or to signify approval or ratification.

Consideration

A concept in contract law, referring to something of value exchanged between parties as part of an agreement.

Gratuitous Promise

A voluntary promise or agreement without consideration, where the promisor is not legally bound to fulfill the promise.