Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Inflation and unemployment are the trade-offs that would result in a rise in inflation with a fall in unemployment. The Philips curve would result in the trade-off between inflation and unemployment.
The economy having an increase in output is the expansion, and a fall in output is called the recession. The economy would have a rise in output and price in expansion and vice versa in recession.
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