The Traditional Phillips Curve Showing a Tradeoff Between Inflation and Unemployment

question 114

Multiple Choice

The traditional Phillips Curve showing a tradeoff between inflation and unemployment is based on having a stable:

• A) Aggregate demand and a shifting short-run aggregate supply
• B) Short-run aggregate supply and a shifting aggregate demand
• C) Long-run aggregate supply and a shifting aggregate demand
• D) Aggregate demand and a shifting long-run aggregate supply

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