Multiple Choice
In the short run, if the economy is in a Phillips phase of the inflation-unemployment relationship, an increase in aggregate demand will generate
A) an increase in the price level and an increase in the unemployment rate.
B) an increase in the price level and a decrease in the unemployment rate.
C) an increase in the price level and no change in the unemployment rate.
D) a decrease in the price level and an increase in the unemployment rate.
Correct Answer:
Verified
Correct Answer:
Verified
Q112: Which of the following statements is true
Q113: Falling inflation means<br>A) that the price level
Q114: Use the following to answer questions .<br>Exhibit:
Q115: Suppose that rising productivity increases potential output
Q116: In early in 1994, the Federal Reserve
Q118: Suppose an economy is operating with a
Q119: During a Phillips phase,<br>A) inflation and unemployment
Q120: In a recovery phase, a falling rate
Q121: In a recovery phase,<br>A) inflation and unemployment
Q122: In a recovery phase,<br>A) the inflation rate