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

Question 37

Multiple Choice

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


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

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