In the long run,the Phillips curve is a ________ at ________.
A) horizontal line; 0% inflation
B) negatively sloped line; the intersection of aggregate demand and short-run aggregate supply
C) vertical line; the natural rate of unemployment
D) None of the above are correct.
Correct Answer:
Verified
Q55: Figure 28-3 Q65: If the economy is producing _,unemployment is Q70: The _ curves are both vertical. Q72: A decrease in aggregate demand will Q76: In the short run,the Federal Reserve can Q89: If workers and firms raise their inflation Q110: What actions could the Federal Reserve take Q121: Which of the following would decrease the Q123: Monetary policy has _ impact on the Q178: If the Federal Reserve attempts to continue
A)aggregate demand
A)cause inflation.
B)decrease
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