The Phillips curve shows the relationship between
A) aggregate supply and the unemployment rate.
B) the inflation rate and the unemployment rate.
C) the rate of growth in real GDP and the unemployment rate.
D) aggregate demand and the unemployment rate.
B
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Which one of the following will shift the consumption curve upward?
a. higher interest rates b. expectations that the economy will grow in the future c. a decrease in money holdings d. higher capacity utilization rates e. a tax cut
The normal life cycle pattern of income
a. contributes to more inequality in the distribution of annual income and to more inequality in living standards. b. contributes to more inequality in the distribution of annual income, but it does not necessarily contribute to more inequality in living standards. c. contributes to less inequality in the distribution of annual income and to less inequality in living standards. d. has no effect on either the distribution of annual income or on living standards.