If the AS Curve Shifts from Year to Year, but the AD

question 58

Multiple Choice

If the AS curve shifts from year to year, but the AD curve does not, then the Phillips curve would show

• A) a positive relationship between the inflation and unemployment rates.
• B) a negative relationship between the inflation and unemployment rates.
• C) no particular relationship between the inflation and unemployment rates.
• D) a constant trade-off between the inflation and unemployment rates.

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Definitions:

Market Economics

An economic system based on supply and demand with little or no government control, where prices are determined freely by the market.

Disadvantaged Groups

refers to segments of the population that face systemic barriers in society, including economic, educational, and social obstacles, often based on race, ethnicity, gender, disability, or economic status.

Economic Interests

The financial benefits or motivations influencing individuals or groups, often driving policy preferences or business decisions.

Popular Democrats

Members or supporters of the Democratic Party who are widely favored or well-liked by the public or within the party itself.