Which of the Following Best Explains the Negative Slope of the Short-Run

question 160

Multiple Choice

Which of the following best explains the negative slope of the short-run Phillips curve?

• A)Weak growth in aggregate demand keeps the economy below potential GDP,so unemployment rises but inflation falls.
• B)Aggregate demand grows so quickly that the inflation rate rises as unemployment rises.
• C)Long-run aggregate supply increases quickly enough that inflation falls as unemployment also falls.
• D)Short-run aggregate supply increases at the same pace as aggregate demand increases so that inflation and unemployment do not change.

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Definitions:

Juvenile Detention

A facility where underage individuals are held temporarily as they await court decisions or serve time for their offenses.

Prison Violence

Acts of aggression and conflict occurring within prison facilities, involving inmates, and sometimes staff, posing significant challenges to security and rehabilitation.

Penal System

The network of agencies and processes established by governments to manage individuals accused and convicted of crimes, including law enforcement, courts, and correctional institutions.

Recidivism

The tendency of a convicted criminal to reoffend, often used as a measure of the effectiveness of criminal justice systems.