The Phillips Curve Relates

question 14

Multiple Choice

The Phillips Curve relates

• A) the unemployment rate to economic growth.
• B) the unemployment rate to inflation.
• C) the unemployment rate to the real wage.
• D) the real wage to total employment.
• E) the real wage to the natural rate of unemployment.

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Definitions:

Variable Overhead

Costs that fluctuate with the level of production activity, such as utilities or raw materials.

Direct Material

Basic substances that are directly used and can be readily identified in the final product.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or production of goods.

Variable Overhead

Costs that change in proportion to the activity or volume of production, such as utilities or indirect materials.