The idea behind the Phillips curve is that ________

A) tight labor markets lead to inflationary pressures
B) when the unemployment rate is low, wages will increase
C) when firms raise wages to attract new workers, prices will also increase
D) all of the above
E) none of the above


D

Economics

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Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:

A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.

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For the economy to be in equilibrium, government purchases plus ________ must equal saving plus ________.

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The quantity of real GDP demanded increases if _______

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