A long-run Phillips curve has a(n) _____ slope because _____.
A) negative; there is a positive relationship between the output gap and the nonaccelerating inflation rate of unemployment (NAIRU)
B) infinite; any unemployment rate below the NAIRU leads to ever-accelerating inflation
C) zero; there is a positive relationship between expected inflation and unemployment
D) positive; any unemployment rate above the NAIRU leads to ever-accelerating inflation
Correct Answer:
Verified
Q116: Expectations of a higher inflation rate shift
Q117: Use the following to answer questions:
Q118: The short-run Phillips curve is:
A) upward sloping
Q119: The negative relationship between the inflation rate
Q120: If the short-run Phillips curve has shifted
Q122: The long-run Phillips curve shows the relationship
Q123: Which shape accurately portrays the long-run Phillips
Q124: In the long run, when the actual
Q125: The cost of disinflation is the:
A) leftward
Q126: As a consequence of the existence of
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