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If Aggregate Supply Changes When Aggregate Demand Is Stable, Then

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If aggregate supply changes when aggregate demand is stable, then the Phillips curve is negatively sloped.


Definitions:

Human-capital Investment

The process of acquiring and enhancing an individual's skills and knowledge, which increases potential productivity and earnings.

Discrimination

Unfair treatment of individuals based on characteristics such as race, gender, or age, rather than merit or performance.

Wage Differentials

The variation in wage rates due to factors such as occupation, industry, location, or the skills and experience of workers.

Labor-market Discrimination

The unfair treatment of workers based on characteristics such as race, gender, age, or religion, rather than job qualifications or performance.

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