Multiple Choice
The vertical 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.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: The Phillips curve implies a positive relationship
Q9: Figure 16-6<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5505/.jpg" alt="Figure 16-6
Q10: What are the three phases of the
Q11: The Phillips phase of the inflation-unemployment cycle
Q13: In the late 1970s, the U.S. economy
Q14: Figure 16-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5505/.jpg" alt="Figure 16-7
Q15: In the three phases of the inflation-unemployment
Q17: Figure 16-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5505/.jpg" alt="Figure 16-7
Q18: Figure 16-3<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5505/.jpg" alt="Figure 16-3
Q68: In the long run, unemployment<br>I. will be