If a Phillips curve shows that unemployment is high and inflation is low 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:C
If a Phillips curve shows that unemployment is high and inflation is low 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 Category: Analyze