The Original (1958)Phillips Curve Stated That

question 112

Multiple Choice

The original (1958) Phillips curve stated that

• A) unemployment and money wage rates move in the same direction.
• B) unemployment and money wage rates move in opposite directions.
• C) there is an inverse relationship between price inflation and
• Unemployment.
• D) there is a direct relationship between price inflation and unemployment.
• E) a and c

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Definitions:

Operating Assets

Resources owned by a business that are used in its day-to-day operations to generate income.

Residual Income

Income that remains after subtracting all the cost of capital from the net operating profit.

Investment Opportunity

Any vehicle through which funds can be invested to potentially earn a return, such as stocks, bonds, real estate, or a business venture.

Minimum Required Rate

Often refers to the minimum rate of return that an investment must offer to be considered viable or the minimum acceptable compensation for delay or risk.