In the Phillips Curve $\Delta \pi _ { t } = \bar { v } \tilde { Y } _ { t } + \bar { a } , \bar { v }$

question 79

Multiple Choice

In the Phillips curve $\Delta \pi _ { t } = \bar { v } \tilde { Y } _ { t } + \bar { a } , \bar { v }$ measures:

• A) a price shock
• B) how sensitive inflation is to interest rates
• C) how sensitive inflation is to aggregate demand conditions
• D) how sensitive inflation is to aggregate supply conditions
• E) how sensitive inflation is to price shocks

---

Definitions:

Life Expectancy

The average period that a person is expected to live, based on statistical measures that correlate with current mortality rates.

Labor Participation

The percentage of the working-age population that is either employed or actively looking for work.

Spousal Earnings

The income generated by one's spouse or partner, often considered in the analysis of household income and dynamics.

Married Persons

Refers to individuals who are legally united in marriage, which can affect tax statuses, legal benefits, and financial liabilities.