The Shift Outward in the Phillips Curve in the 1970s

question 255

Multiple Choice

The shift outward in the Phillips curve in the 1970s was caused by:

• A) the oil supply shocks of the mid-1970s and the rise in inflationary expectations.
• B) the fall in the unemployment rate.
• C) the fall in the inflation rate.
• D) the rise in the trade deficit.

Comprehend the concepts of mechanical and organic solidarity and their application to types of societies.

Grasp the definition and importance of social structure in shaping society.

Recognize the societal impact of division of labor based on various factors.

Understand the distinction between gesellschaft and gemeinschaft societies.

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Definitions:

Involuntary Intergenerational Transfer

The unintended redistribution of wealth across generations, often due to policies or economic conditions, without the explicit consent of those affected.

Tax-sheltered Investment

A financial arrangement designed to reduce or delay taxes on investments, allowing the investor to benefit from compound growth without immediate taxation.

Stocks

Financial instruments representing ownership shares in companies, allowing investors to benefit from profits and appreciation in value.

Roth Retirement Plan

A type of retirement plan where contributions are made with after-tax dollars, and qualified withdrawals in retirement are tax-free.