According to the Short-Run Phillips Curve,if the Central Bank Increases

question 9

Multiple Choice

According to the short-run Phillips curve,if the central bank increases the money supply,then

• A)inflation and unemployment will both fall.
• B)inflation and unemployment will both rise.
• C)inflation will fall and unemployment will rise.
• D)inflation will rise and unemployment will fall.

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Definitions:

Perpetual Basis

An approach or method without a predetermined end date, continuing indefinitely.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

LIFO Reserve

The difference between the cost of inventory calculated using the Last In, First Out method and the First In, First Out method.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle.