The Short-Run Phillips Curve Shows That

question 121

Multiple Choice

The short-run Phillips curve shows that:

• A)the economy can have low inflation and low unemployment simultaneously.
• B)the economy can have high per-capita income and high interest rate simultaneously.
• C)a reduction in per-capita income comes at the expense of lower inflation.
• D)a reduction in unemployment comes at the expense of higher inflation.
• E)a reduction in inflation comes at the expense of lower exchange rate.

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Definitions:

Specific Performance

A legal remedy requiring a party to execute a contract according to the precise terms agreed on, rather than paying damages.

Restitution

A legal principle that requires a party to restore the other party to their original position prior to a loss or injury, or to compensate for the loss.

Injunction

A legal order that requires an individual or entity to do or to cease doing a specific action.

Damages

Monetary compensation awarded to a party in a legal proceeding as a remedy for loss or injury.