If actual inflation differs from expected inflation, what is the slope of the Phillips curve?
A) It is horizontal in the short and long run.
B) It is upward sloping in the short run and vertical in the long run.
C) It is vertical in the short run and upward sloping in the long run.
D) It is downward sloping in the short run and vertical in the long run.
Correct Answer:
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Q156: If strong monetary policy stimulus is used
Q157: Figure 17-8 Q158: Figure 17-8 Q159: If policy makers do nothing in response Q160: Policy makers who believe that the costs Q162: Based on the evidence, most economists believe Q163: If actual inflation differs from expected inflation, Q163: If the self-correcting mechanism operates quickly, Q177: If workers demand wage compensation in advance Q179: If workers underestimate inflation, the aggregate supply
A)direct intervention
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