If the Inflation Rate Is Decreasing While Unemployment Is Increasing

question 144

Multiple Choice

If the inflation rate is decreasing while unemployment is increasing:

• A)​the short-run Phillips curve must have shifted right.
• B)​the short-run Phillips curve must have shifted left.
• C)​it must have involved a movement along the short-run Phillips curve
• D)​it would be inconsistent with any possible Phillips curve scenario.

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Definitions:

Media Advertising

The use of various media channels, such as TV, radio, and digital platforms, to promote products, services, or brands to a wide audience.

Surplus

An excess of something, such as goods, services, or resources, beyond what is needed or used.

Balance of Trade

The difference in value between a country's imports and exports over a certain period.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to a country's economy and trade balance.