The Phillips Curve Is

question 233

Multiple Choice

The Phillips curve is

• 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 the unemployment rate and the real Gross Domestic Product (GDP) level.
• D) a positive relationship between price stability and constant, small-increment changes in the fiscal policy on the part of the Fed.

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Definitions:

Cognitive Component

Refers to the beliefs, thoughts, and knowledge that influence how an individual understands and interacts with the world.

Affective Component

Pertains to the emotional aspect of attitudes, reflecting feelings or emotions related to an object, person, or event.

Behavioural Component

The aspects of psychology related to the actions or reactions of individuals usually in response to external stimuli.

Cognitive Component

Refers to the beliefs, thoughts, and knowledge about the subject at hand, which is a part of an attitude.