The Negative Correlation Between Inflation and Unemployment Is Observed Because

question 82

Multiple Choice

The negative correlation between inflation and unemployment is observed because

• A)a rightward shift of the AD curve will raise unemployment in the long run and decrease inflation in the short run.
• B)a rightward shift of the AD curve will raise unemployment in the short run and decrease inflation in the long run.
• C)a rightward shift of the AD curve will reduce unemployment in the long run and increase inflation in the short run.
• D)a rightward shift of the AD curve will reduce unemployment in the short run and increase inflation in the long run.
• E)a leftward shift the AD curve will increase potential GDP and reduce inflation in the short run.

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Definitions:

Implied Warranty

A warranty that is imposed by law rather than by statements, descriptions, or samples given by the seller.

C.P.A.

Stands for Certified Public Accountant, a designation given to someone who has passed the Uniform CPA Examination and met additional state education and experience requirements.

Tax Liability

The total amount of tax owed by an individual, corporation, or other entity to a taxing authority.