The Basic Problem Portrayed by the Traditional Phillips Curve Is

question 48

Multiple Choice

The basic problem portrayed by the traditional Phillips Curve is

• A)that a level of aggregate demand sufficiently high to result in full employment may also cause inflation.
• B)that changes in the composition of total labor demand tend to be deflationary.
• C)that unemployment rises at the same time the general price level is rising.
• D)the possibility that automation will increase the level of noncyclical unemployment.

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