On the Modern Phillips Curve,the Beginning of a Recession Is

question 70

Multiple Choice

On the modern Phillips curve,the beginning of a recession 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

---

Definitions:

Price Decrease

A reduction in the cost at which goods or services are sold in the market.

Demand

The capacity for purchasing goods or services that people demonstrate readiness and financial ability for, at diverse price levels, during a certain timeframe.

Law Of Demand

The economic principle stating that as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa.

Income Increases

A situation wherein individuals or entities experience a rise in their earnings or profits over a certain period.