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:
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Q42: In a recovery phase,
A) inflation and unemployment
Q43: The Phillips phase of the inflation-unemployment relationship
Q44: Use the following to answer questions .
Exhibit:
Q45: Use the following to answer questions .
Exhibit:
Q46: The essential feature of a stagflation phase
Q48: Use the following to answer questions .
Exhibit:
Q49: Use the following to answer questions .
Exhibit:
Q50: Use the following to answer questions .
Exhibit:
Q51: Use the following to answer questions .
Exhibit:
Q52: In a stagflation phase, a decrease in
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