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

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Definitions:

P-Waves

Primary waves, or compressional waves, which are the fastest kind of seismic wave and can travel through solid, liquid, or gas layers of the Earth.

Seismographs

Seismographs are instruments that measure and record the motion of the ground, including those of seismic waves generated by earthquakes, volcanic eruptions, and other seismic sources.

Plate Divergence

A tectonic process involving the moving apart, or divergence, of two tectonic plates.

Oceanic Trench

Deep depressions in the ocean floor caused by the subduction of one tectonic plate under another.