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Only the Short-Run Phillips Curve Is Downward Sloping Because

Question 9

Multiple Choice

Only the short-run Phillips curve is downward sloping because


A) in the long run,prices adjust,eliminating the relationship between inflation and unemployment.
B) in the long run,prices are sticky,eliminating the relationship between inflation and unemployment.
C) central banks have no influence over the economy in the short run.
D) central banks only have influence over the economy in the long run.
E) long-run effects of monetary policy are negated by fiscal policy.

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