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The Vertical Long-Run Phillips Curve Occurs in the Long Run

Question 65

Multiple Choice

The vertical long-run Phillips curve occurs in the long run because


A) the aggregate supply curve is vertical which means that changes in aggregate demand will not change unemployment.
B) wage and price rigidities prevent changes in aggregate demand to change unemployment.
C) economic agents are quick to respond to changes in the price level.
D) of lags in monetary and fiscal policies.

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