Which of the Following Is True?​

question 73

Multiple Choice

Which of the following is true?​

• A)​Inflation and unemployment rates can both increase in the short run in response to positive supply shocks.
• B)​Inflation and unemployment rates can both decrease in the short run in response to reduced aggregate demand.
• C)​Inflation and unemployment rates can both decrease in the short run in response to positive supply shocks.
• D)​The short-run Phillips curve relationship appears to be relatively stable over time.

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Definitions:

Business Planning

The process of formulating goals, strategies, and actions to start, sustain, and grow a business.

Communism

An economic system characterized by public ownership of property and government planning of the economy.

Capitalism

The dominant economic system in the world today. Capitalist economies are characterized by private ownership of property and competition in the pursuit of profit.

Industrialized Countries

Nations characterized by a developed industrial base, advanced technology, and a high standard of living.