The Idea Behind the Phillips Curve Is That ________

question 68

Multiple Choice

The idea behind the Phillips curve is that ________.

• A)tightness in the labor market raises wages but has little impact on prices
• B)when the unemployment rate is low,wages will decrease
• C)when firms raise wages to attract new workers,prices will also increase
• D)all of the above
• E)none of the above

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Definitions:

Business Entity Assumption

An accounting principle that treats a business as an independent entity separate from its owners for accounting and legal purposes.

Business's Assets

Resources owned by a company that have economic value and can be used to meet debts, commitments, or legacies.