If a Phillip curve shows that unemployment is low and inflation is high in the economy, then that economy:
A. is producing at its potential GDP.
B. is producing at a point where output is more than potential GDP.
C. is producing at a point where output is less than potential GDP.
D. is producing at its equilibrium point.
Answer:B
If a Phillip curve shows that unemployment is low and inflation is high in the economy, then that economy:
A. is producing at its potential GDP. B. is producing at a point where output is more than potential GDP. C. is producing at a point where output is less than potential GDP. D. is producing at its equilibrium point.
Explanation: Type: Multiple Choice