The long-run Phillips curve shows that:
A) there is a trade-off between unemployment and inflation.
B) an expansionary policy could lead to lower unemployment temporarily.
C) the natural rate of unemployment occurs when the actual inflation rate equals the expected inflation rate.
D) lower unemployment can be sustained indefinitely with continuous expansionary policies.
Correct Answer:
Verified
Q230: If an economy finds itself in a
Q231: Disinflation:
A)entails eliminating inflation in an economy.
B)policy is
Q232: When inflation is high:
A)people will increase their
Q233: Which of the following could lead to
Q234: Okun's law finds that output gaps and
Q235: During an inflationary gap:
A)the unemployment rate is
Q236: A negative output gap is associated with
Q238: The short-run Phillips curve:
A)depicts the positive relationship
Q239: The long-run Phillips curve:
A)depicts the negative relationship
Q240: During a liquidity trap:
A)monetary policy is ineffective,
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