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.

Understand the influence of American foreign policy decisions and treaties on the nation’s expansion and international relations.

Appreciate the cultural and social shifts, including movements towards education and the development of distinct American cultures.

Grasp the economic challenges and solutions proposed by American leaders to address them, including the establishment of a National Bank.

Understand the critical judicial decisions and their impact on the shaping of the United States’ federal structure and economic system.

---

Definitions:

Maturity

The date when a financial instrument (like a bond) expires and the principal is to be paid back to creditors.

Annual Interest Rate

The percentage increase in money lent or invested over a one-year period, expressed as a percentage of the principal.

Cash Conversion Cycle

A metric that measures the time between when a company pays for its inventory and when it receives cash from selling it.

Inventory Turnover

A ratio indicating how many times a company’s inventory is sold and replaced over a specific period.