The Phillips Curve Is Based on the Idea That with a Constant

question 106

Multiple Choice

The Phillips Curve is based on the idea that with a constant short-run aggregate supply curve, a greater increase in aggregate demand is associated with a:

• A)smaller increase in price level.
• B)smaller increase in nominal wage rates.
• C)greater increase in the unemployment rate.
• D)greater increase in the rate of inflation.

---

Definitions:

Total Fertility Rate

A demographic measure that estimates the average number of children a woman will have over her childbearing years, given current birth rates.

Falling Birthrates

A demographic trend characterized by a decrease in the birth rate over a period, often leading to shifts in national and global population dynamics.

Falling Death Rates

The decline in the number of deaths per unit of population over a period of time, often indicating improvements in health and living conditions.

Total Fertility Rate

The average number of children a woman would have over her lifetime, given current birth rates.