Multiple Choice
If, in the long run, people adjust their price expectations so that all prices and incomes move proportionately to an increase in the price level, then the long-run Phillips curve
A) has a slope that is determined by how fast people adjust their price expectations.
B) is negatively sloped.
C) is vertical.
D) is positively sloped.
Correct Answer:
Verified
Correct Answer:
Verified
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