The original Phillips Curve
A) shows an immediate trade-off between inflation and unemployment.
B) is a short-run relationship.
C) assumes inflation expectations do not change over time.
D) assumes the natural rate of employment does not change over time.
E) does all of the above.
Correct Answer:
Verified
Q223: Cost-push inflation is caused by
A) positive demand
Q224: The original Phillips Curve suggests it is
Q225: Which is not part of the story
Q226: The organization responsible for 1973 increases in
Q227: Demand-pull inflation is caused by
A) positive demand
Q229: Periods of low unemployment and high inflation
Q230: Which is not part of the story
Q231: Economists believed in a clear tradeoff between
Q232: The original Phillips Curve suggests it is
Q233: The demand-pull story of inflation is not
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