According to the Short-Run Phillips Curve,if Unemployment Is 3

question 161

Multiple Choice

According to the short-run Phillips curve,if unemployment is 3.2% and inflation is 1.3%,an increase in the inflation rate might result in which of the following?

• A)an increase in the unemployment rate to 3.4%
• B)a decrease in the unemployment rate to 3.0%
• C)an increase in the unemployment rate and a return to the original inflation rate
• D)a return to the original inflation rate of 1.3%

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Definitions:

Target Cost

The maximum amount that can be spent on a product in order to generate the desired profitability level.

Cost-Plus Approach

A pricing strategy where a fixed percentage or fixed amount is added to the cost of producing a product or service to determine its selling price.

Markup

The amount added to the cost of goods to cover overhead and profit, represented as a percentage of cost or a fixed amount.

Selling Expenses

Costs associated with the marketing and sale of a company's products or services, excluding production costs.