A Positive Statement

question 8

Multiple Choice

A positive statement

• A) must always be right.
• B) cannot be tested.
• C) might be right or wrong.
• D) depends on someone's value judgment.
• E) cannot be negative.

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Definitions:

Short-Run Aggregate-Supply Curve

Depicts the relationship between the price level and the quantity of goods and services that firms are willing to produce, taking some inputs as fixed.

Short-Run Phillips Curve

A graphical representation that shows the inverse relationship between short-term inflation and unemployment rates, suggesting a trade-off.

Inflation Rate

The percentage increase in the general level of prices for goods and services in an economy over a period of time, often measured annually.

Natural Rate

Often referred to as the natural rate of unemployment, it is the level of unemployment consistent with a stable rate of inflation.