According to the Short-Run Phillips Curve,if Unemployment Is 3

question 68

Multiple Choice

According to the short-run Phillips curve,if unemployment is 3.2% and inflation is 1.3%,an increase in the inflation rate might result in which of the following?

• A)an increase in the unemployment rate to 3.4%
• B)a decrease in the unemployment rate to 3.0%
• C)a decrease in the demand for labor in the economy
• D)a return to the original inflation rate of 1.3%

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Definitions:

Tendencies

Inclinations or predispositions toward certain behaviors, thoughts, or actions that are characteristic of an individual or group.

Assimilated

The process by which a person or group adopts the cultural traits or social patterns of another group, often losing their original identity.

Economically Successful

A state of achieving significant financial prosperity or wealth, often linked to effective management of resources and investments.

Educationally Successful

Achieving significant accomplishments or obtaining high levels of performance in educational settings, often measured by grades, graduation, or other academic achievements.