The Short-Run Phillips Curve Relationship Indicates That

question 25

Multiple Choice

The short-run Phillips curve relationship indicates that

• A) only an anticipated change in aggregate demand affects the inflation rate or the unemployment rate.
• B) an unanticipated increase in aggregate demand raises the inflation rate but lowers the unemployment rate.
• C) an unanticipated increase in aggregate demand lowers the inflation rate but raises the unemployment rate.
• D) an unanticipated increase in aggregate demand raises both the inflation rate and the unemployment rate.

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Overwhelmed

A feeling of being completely overcome or overpowered by emotions, circumstances, or physical demands.

Potentiating Pairings

A concept in psychology or pharmacology where two elements combined enhance each other's effects.

Venting

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