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

question 5

Multiple Choice

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

• A)an increase in government spending and a fall in unemployment
• B)an increase in inflation and a decrease in output
• C)a decrease in the inflation rate and a rise in the unemployment rate
• D)a decrease in output and an increase in unemployment

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Definitions:

Volcanic Bombs

Large blobs of magma that are ejected from a volcano, solidify in the air, and fall to the ground in the vicinity of the volcano.

Toxic Gases

Harmful gases that can cause damage to living organisms, materials, and the environment, often produced by industrial activities or natural processes.

Vesicular Basalt

A type of basalt rock characterized by a porous texture due to gas bubbles trapped during volcanic eruption cooling.

Lava Flows

Lava flows are streams of molten rock that pour out of an erupting volcano, cooling and solidifying to form new rock formations.