Which of the following describes the distinction between the Phillips curve and the AS curve?
A) There is no distinction: the two curves are essentially the same thing.
B) The AS curve has the price level on the vertical axis whereas the Phillips curve has the rate of wage changes on the vertical axis.
C) The AS curve has the rate of price inflation on the vertical axis whereas the Phillips curve has the rate of wage changes on the vertical axis.
D) The AS curve has the price level on the vertical axis whereas the Phillips curve has the rate of change in the interest rate on the vertical axis.
E) The AS curve has the price level on the vertical axis whereas the Phillips curve has the interest rate on the vertical axis.
Correct Answer:
Verified
Q26: The Phillips curve provides a theoretical link
Q27: The growth rate of potential output might
Q28: An expansionary fiscal policy that takes the
Q29: Which of the following characteristics define the
Q30: An inflationary output gap occurs when
A)potential GDP
Q32: What is sometimes called the "long- run
Q33: Suppose the government had made a decision
Q34: Income taxes in Canada can be considered
Q35: Consider the AD/AS macro model. A permanent
Q36: The economy's output gap is defined as
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents