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If Actual Inflation Differs from Expected Inflation, What Is the Slope

Question 147

Multiple Choice

If actual inflation differs from expected inflation, what is the slope of the Phillips curve?


A) The slope is horizontal in the short and long run.
B) The slope is upward sloping in the short run and vertical in the long run.
C) The slope is vertical in the short run and upward sloping in the long run.
D) The slope is downward sloping in the short run and vertical in the long run.

Correct Answer:

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