According to the short-run Phillips curve, when actual real GDP is _____ potential output, the price level _____ and the unemployment rate falls.
A) below; increases
B) above; decreases
C) below; decreases
D) above; increases
Correct Answer:
Verified
Q83: The short-run Phillips curve shows:
A) a direct
Q84: A supply shock:
A) moves our economy along
Q85: Along a Phillips curve:
A) consumption depends on
Q86: The relationship between the output gap and
Q87: The notion that there is a trade-off
Q89: The natural rate of unemployment is 4%,
Q90: According to current estimates of Okun's law,
Q91: Okun's law is less than a 1:1
Q92: Assume that the economy is contracting and
Q93: The short-run Phillips curve represents the relationship
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