Which of the Following Best Explains the Negative Slope of the Short-Run

question 160

Multiple Choice

Which of the following best explains the negative slope of the short-run Phillips curve?

• A)Weak growth in aggregate demand keeps the economy below potential GDP,so unemployment rises but inflation falls.
• B)Aggregate demand grows so quickly that the inflation rate rises as unemployment rises.
• C)Long-run aggregate supply increases quickly enough that inflation falls as unemployment also falls.
• D)Short-run aggregate supply increases at the same pace as aggregate demand increases so that inflation and unemployment do not change.

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Definitions:

Support Department Allocations

This is the process of distributing the costs of support departments to producing or operational departments within an organization.

Operating Expenses

Expenses incurred during routine business operations, including rent, utilities, salaries, and advertising, but excluding costs of goods sold.

Cost Center Manager

An individual responsible for overseeing the expenses and budget of a specific department or segment within a company, ensuring efficient cost management.

Budget Performance Report

An analysis that compares actual financial performance with planned or budgeted amounts.