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:

Core Countries

Nations, usually industrialized, that dominate the global economic system through wealth, diverse production, and strong government institutions.

World Systems Theory

A macro-sociological perspective that analyzes societies in terms of the global economic system, dividing the world into core, periphery, and semi-periphery zones.

Peripheral Countries

Nations that are less developed than the semi-periphery and core countries, often exploited for their resources by more economically dominant nations.

World Poverty

A global issue characterized by the lack of basic resources, services, and opportunities necessary for people to live a healthy and productive life, disproportionately affecting developing countries.