After the 1960s,the Short-Run Phillips Curve Based on U

question 96

Multiple Choice

After the 1960s,the short-run Phillips curve based on U.S.economic data:

• A)began shifting inward.
• B)began shifting outward.
• C)did not shift at all.
• D)became virtually horizontal.
• E)became virtually vertical.

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Definitions:

Real GDP

Real Gross Domestic Product, which is the inflation-adjusted measure of the total value of all goods and services produced within a certain time frame.

Price Level

A gauge for the mean cost of products and services across an economy at a given time.

Short-Run Aggregate Supply

Represents the total supply of goods and services that firms in an economy plan on selling during a short time period, based on the current price level.

Aggregate Demand

The total demand for goods and services within a particular market or economy at a given price level and period.