Author Question: One way of expressing the concept of the short-run Phillips curve is to say that: a. the cost of ... (Read 35 times)

ARLKQ · **on:** Jun 30, 2018

One way of expressing the concept of the short-run Phillips curve is to say that:
a. the cost of reducing unemployment is higher inflation.
b. nothing but good comes from reducing unemployment.
c. the cost of reducing inflation is lower unemployment.
d. aggregate supply and aggregate demand will always be equal at the potential output level.
e. the best economic policy is one that attempts to make the rate of inflation equal to the rate of unemployment.

Question 2

The short-run Phillips curve shows that as the unemployment rate goes down, _____.
a. unemployment benefit payments go up
b. prices go down
c. the Phillips curve shifts outward
d. the inflation rate goes up
e. there is no change in the rate of inflation