Multiple Choice
A mistaken assumption about the simple Phillips curve is to assume that it:
A) represents a permanent trade-off between inflation and unemployment.
B) applies more to the short run than the long run.
C) shows a relationship between inflation and unemployment.
D) has a negative slope.
Correct Answer:

Verified
Correct Answer:
Verified
Q64: The negative relationship between inflation and unemployment
Q65: When will the economy be at a
Q66: An important lesson from the Lucas critique
Q67: Use the expectations-augmented Phillips curve to explain
Q68: When inflation expectations are stable, the Phillips
Q70: A major flaw in the development of
Q71: What movement would occur on an economy's
Q72: If the natural rate hypothesis is accepted,
Q73: Which of the following is NOT consistent
Q74: In the self-correction and the long-run Phillips