The Negative Slope of the Short-Run Phillips Curve Seems to Suggest

question 125

Multiple Choice

The negative slope of the short-run Phillips curve seems to suggest that government ___________ policies might be used to ___________ the unemployment rate at the cost of a ___________ inflation rate.

• A) expansionary;lower;higher
• B) contractionary;lower;higher
• C) expansionary;lower;lower
• D) contractionary;raise;higher
• E) expansionary;raise;higher

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Definitions:

Liberal Arts

A range of subjects including literature, philosophy, mathematics, and social and physical sciences, aimed at imparting general knowledge and critical thinking skills.

Thoughtful Problem Solving

An approach to solving problems that involves careful consideration, planning, and decision making.

Power Differential Heuristic

A cognitive short-cut used to quickly assess and respond to situations based on perceived imbalances in power or authority.

System-2 Thinking

A cognitive process that requires analytical and deliberate thought to solve complex problems or make decisions.