Multiple Choice
The long-run Phillips curve shows
A) a tradeoff between inflation and unemployment.
B) the relationship between unemployment and inflation when the inflation rate is zero.
C) the relationship between inflation and unemployment when the expected inflation rate exceeds the actual inflation rate.
D) the relationship between inflation and unemployment when the actual inflation rate and the expected inflation rate are equal.
Correct Answer:

Verified
Correct Answer:
Verified
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Q207: The risk of highly leveraged investments is
Q208: If the rational expectations theory is correct,
Q209: According to the equation for the Phillips
Q211: The shift outward in the Phillips curve
Q212: According to the equation for the Phillips
Q213: Which of these is NOT a cost
Q214: (Figure: Determining Long-Run and Short-Run Economic Shifts)
Q215: In effect, the Phillips curve framework implies