If the AS Curve Shifts from Year to Year, but the AD

question 70

Essay

If the AS curve shifts from year to year, but the AD curve does not, then what kind of relationship would we expect between inflation and unemployment?

---

Definitions:

Solvency

The ability of an entity to pay its long-term debts and financial obligations.

Profitability

Profitability is a measure of the efficiency and financial success of a business, indicating the degree to which a company or project generates more revenue than its costs.

Price-Earnings Ratio

A valuation metric for stocks, calculated by dividing the current market price of a stock by its earnings per share (EPS).

Earnings Per Share

A financial ratio that measures the portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability on a per-share basis.