The Short-Run Phillips Curve Shows the Combinations of

question 32

Multiple Choice

The short-run Phillips curve shows the combinations of

• A)unemployment and inflation that arise in the short run as aggregate demand shifts the economy along the short-run aggregate supply curve.
• B)unemployment and inflation that arise in the short run as short-run aggregate supply shifts the economy along the aggregate demand curve.
• C)real GDP and the price level that arise in the short run as short-run aggregate supply shifts the economy along the aggregate demand curve.
• D)None of the above is correct.

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Definitions:

Columbia River Project

A comprehensive series of public works, including dams and hydroelectric power plants, initiated to provide irrigation, flood control, and electricity generation along the Columbia River in the United States.

Public-Works Programs

Government-funded projects aimed at creating jobs and building public infrastructure like roads, schools, and hospitals.

Grand Coulee Dam

One of the largest concrete structures in the world, located on the Columbia River in Washington State, primarily built for power production and irrigation.

"Brains Trust"

A group of close advisors, academics, and economists who advised President Franklin D. Roosevelt during the New Deal.