On the Modern Phillips Curve,the Initial Impact of an Increase

question 80

Multiple Choice

On the modern Phillips curve,the initial impact of an increase in the world price of steel is shown by ________.

• A)an upward movement along the Phillips curve to a higher inflation rate
• B)an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate
• C)a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate
• D)a downward movement along the Phillips curve to higher unemployment rates
• E)none of the above

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Definitions:

Current Asset

An asset on a company's balance sheet that is expected to be converted into cash within one year or one business cycle, whichever is longer.

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.

Operating Activities

Activities directly related to the primary business operations, including revenue generation and expenses directly tied to the core business functions.

Indirect Method

A way of calculating cash flows from operating activities by adjusting net income for changes in non-cash accounts.