The Price Level in the Economy Between 2012 and 2013

question 233

Multiple Choice

The price level in the economy between 2012 and 2013 rose from 100 to 110.Between 2013 and 2014,the price level rose from 110 to 121.How does the short-run Phillips curve predict the unemployment rate will change as a result?

• A)The unemployment rate will decrease since inflation decreased.
• B)The unemployment rate will decrease since inflation increased.
• C)The unemployment rate will increase since inflation increased.
• D)The unemployment rate will not change since there is no change in the rate of inflation.

---

Definitions:

Lens

A transparent optical device used to converge or diverge transmitted light and to form images.

Visual Acuity

The clarity or sharpness of vision, a measure of how well a person can see details at a distance.

Iris

The colored part of the eye surrounding the pupil, which controls the amount of light that enters the eye by adjusting the size of the pupil.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, contributing to the eye's ability to focus visual images.