In a Graph of Unemployment Rates (On the Horizontal Axis)versus

question 249

Multiple Choice

In a graph of unemployment rates (on the horizontal axis) versus inflation rates (on the vertical axis) ,the short-run Phillips Curve is

• A)downward sloping.
• B)horizontal.
• C)vertical.
• D)upward sloping.

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Definitions:

Government Agency

A permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions.

Negative Externality

A cost that affects a party who did not choose to incur that cost, typically resulting from economic activity by another party.

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, including both private costs and external effects.

External Social Cost

Costs of production or consumption that affect individuals not involved in the transaction, often unaccounted for by the market price.