The Short-Run Phillips Curve Is ________, While the Long-Run Phillips

question 23

Multiple Choice

The short-run Phillips curve is ________, while the long-run Phillips curve is vertical at the ________.

• A) downward sloping; real wage
• B) downward sloping; natural rate of unemployment
• C) upward sloping; minimum wage
• D) upward sloping; average nominal wage rate
• E) horizontal; origin

---

Definitions:

Break-Even Point

The point at which total costs equal total revenues, indicating that a business is neither making a profit nor incurring a loss.

Contribution Margin Ratio

The contribution margin ratio is a financial metric indicating the proportion of sales revenue that exceeds variable costs and is available to cover fixed costs and generate profit.

Fixed Costs

Outlays for rent, salaries, and insurance that are unaffected by variations in the volume of production or sales.

Sales Dollars

A term referring to the total revenue generated from the sale of goods or services, expressed in monetary value.