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

question 58

Multiple Choice

If the AS curve shifts from year to year, but the AD curve does not, then the Phillips curve would show

• A) a positive relationship between the inflation and unemployment rates.
• B) a negative relationship between the inflation and unemployment rates.
• C) no particular relationship between the inflation and unemployment rates.
• D) a constant trade-off between the inflation and unemployment rates.

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Definitions:

Exchange Rates

The rate for transforming one currency into another.

Income Statement

A financial report that shows a company's revenues, expenses, and net income over a specific period of time.

Functional Currency

The primary currency of the primary economic environment in which an entity operates, usually used in its financial reporting.

Sales

The total receipts a company generates from selling its goods or services over a certain period of time; also often referred to as revenue.