If the long-run aggregate supply curve is vertical,
A) the economy stays at the natural rate of inflation in the long run.
B) the short-run Phillips curve must be vertical.
C) unemployment and inflation are positively related in the long run.
D) the trade-off between unemployment and inflation cannot be permanent.
E) any change in the unemployment rate must be permanent.
Correct Answer:
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Q122: The short-run Phillips curve is _ than
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Q125: The short-run Phillips curve will not shift
Q126: When unemployment is above its natural rate,
Q128: A decrease in aggregate demand will
A)cause inflation.
B)decrease
Q129: If strong aggregate demand is pushing the
Q129: An increase in the level of structural
Q130: An increase in expected inflation will shift
Q131: If the Bank of Canada attempts to
Q132: If the economy is producing _, unemployment
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