The Phillips Curve Shows

question 76

Multiple Choice

The Phillips curve shows

• A)a positive relationship in the long-run between the rate of inflation and the rate of unemployment.
• B)a negative relationship between the inflation rate and the unemployment rate,at least in the short run.
• C)a positive relationship between contractionary monetary policy and higher price levels.
• D)a positive relationship between price stability and constant,small-increment changes in the fiscal policy on the part of the Bank of Canada.

Recognize the impact of externalities on social costs, social benefits, and the efficiency level of production.

Explore the implications of property rights, legal frameworks (injunctions, liability rules), and collective bargaining on addressing externalities.

Distinguish between public and private solutions to externalities and the conditions under which they are effective.

Analyze the implications of externalities on market failure and the role of government in correcting these failures.

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Definitions:

Monetary Policy

Refers to the actions undertaken by a nation's central bank to control the money supply to achieve macroeconomic goals that promote sustainable economic growth.

NAFTA

The North American Free Trade Agreement, a treaty made to eliminate trade barriers between the U.S., Canada, and Mexico.

Financial Investments

Assets acquired with the goal of generating income or appreciating in value, such as stocks, bonds, or real estate.

Scientific Evidence

Information that has been collected systematically following scientific methods, intended to support or disprove theories or hypotheses, and is often used in legal and regulatory decision-making processes.