According to the Phillips Curve, If Current Output Equals Potential

question 27

Multiple Choice

According to the Phillips curve, if current output equals potential output:

• A) unemployment is zero.
• B) inflation fluctuates a lot.
• C) inflation is steady.
• D) unemployment is negative.
• E) the economy is booming.

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Definitions:

Deposit

A sum of money placed or kept in a bank account, usually to gain interest.

Interest

The charge for borrowing money or the return on investment of saved funds.

Months

Units of time, each approximately 30-31 days long, used to measure durations and periods in the calendar year.

Deposit

A quantity of funds saved or stored in a banking account, often for the purpose of accruing interest.