The short-run Phillips curve shows only a short-run tradeoff between the unemployment rate and the inflation rate because in the long run, the
A) inflation rate returns to the natural inflation rate and so there is no long-run tradeoff between the inflation rate and the unemployment rate.
B) inflation rate returns to the natural inflation rate and the unemployment rate returns to the natural unemployment rate.
C) unemployment rate returns to the natural unemployment rate and so there is no long-run tradeoff between the inflation rate and the unemployment rate.
D) natural unemployment rate increases.
E) expected inflation rate increases.
Correct Answer:
Verified
Q29: In order to keep the real wage
Q30: The long-run Phillips curve is _ curve
Q31: The long-run Phillips curve indicates that
A) any
Q32: When the aggregate demand curve shifts rightward,
Q33: In the short run, a decrease in
Q35: If the economy is at full employment,
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