The Phillips Curve Describes the Relationship Between

question 31

Multiple Choice

The Phillips curve describes the relationship between

• A)output growth and unemployment.
• B)inflation and output growth.
• C)output growth and money supply.
• D)inflation and unemployment .

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Definitions:

Surplus

The situation in which the quantity of a good supplied is greater than the quantity demanded at the current price.

Price Ceiling

A legally imposed maximum price on goods or services, intended to prevent prices from rising too high.

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.

Price Ceiling

A legal maximum price that can be charged for a good or service, above which it cannot be sold.