A Leftward Shift of the Traditional Phillips Curve Suggests That

question 38

Multiple Choice

A leftward shift of the traditional Phillips curve suggests that:

• A)the productivity of labour has decreased
• B)a lower rate of inflation is now associated with each rate of unemployment than previously
• C)cost-push inflation is present
• D)a higher rate of inflation is now associated with each rate of unemployment than previously
• E)demand-pull inflation is present

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Definitions:

Discount Rate

The discount rate is the interest rate used to determine the present value of future cash flows in discounted cash flow analysis.

Discount Periods

Time frames during which a payer can make payment less than the nominal amount due before a specified due date to receive a discount.

Discount Rate

The interest rate charged by central banks for loans to commercial banks or the rate used in discounted cash flow analysis to determine the present value of future cash flows.

Present Value

The present worth of a future amount of money or series of cash flows, considering a certain rate of return.