Use the Following to Answer Questions

question 69

Multiple Choice

Use the following to answer questions :
Exhibit: AD-AS Shifts
-(Exhibit: Short-Run Phillips Curve) As the short-run Phillips curve shifts from A to B to C to D:

• A) the expected rate of inflation is unchanged at every level of unemployment.
• B) there is a lower-expected rate of inflation at every level of unemployment.
• C) there is a higher-expected rate of inflation for every level of unemployment.
• D) the natural rate of unemployment falls

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Definitions:

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, investment, or debt repayment, instead of being paid out as dividends.

Dividend Policy

A company's strategy or guideline determining the amount of profits paid out to shareholders as dividends versus being reinvested in the business.

Tax Considerations

Tax considerations involve understanding how taxes affect investment and financial decisions, impacting the overall cost or benefits of these decisions.

Restrictive Covenants

Clauses in contracts that limit certain actions of the parties involved, often used in employment contracts and loan agreements to protect business interests.