If a Phillip curve shows that unemployment is low and inflation is high in the economy, then that economy: a) is producing at its equilibrium point. b) is producing at its potential GDP. c) is producing at a point where output is more than potential GDP. d) is producing at a point where output is less than potential GDP.

If a Phillip curve shows that unemployment is low and inflation is high in the economy, then that economy: a) is producing at its equilibrium point. b) is producing at its potential GDP. c) is producing at a point where output is more than potential GDP. d) is producing at a point where output is less than potential GDP.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 4WNG

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