If an Economy Has a Horizontal Phillips Curve and Experiences

question 20

Multiple Choice

If an economy has a horizontal Phillips curve and experiences an expansion, inflation:

• A) falls.
• B) rises sharply.
• C) rises, but not very much.
• D) does not change.
• E) falls sharply.

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Definitions:

Inequality

The state of being unequal, particularly in terms of rights, status, or opportunities among different groups of people.

Veil of Ignorance

A concept in moral and political philosophy that suggests making decisions with a hypothetical lack of information about one's status or position in society to ensure fairness.

Original Position

A hypothetical scenario used in political philosophy, particularly by John Rawls, to establish principles of justice that are chosen by individuals under a veil of ignorance, without knowledge of their place in society.

Talents and Abilities

Refer to the natural aptitudes and learned skills that individuals possess, which can vary widely between different people.