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The Long-Run Phillips Curve Applies When the Economy Is at Full

Question 40

Multiple Choice

The long-run Phillips curve applies when the economy is at full employment, so the long-run Phillips curve is ________ which demonstrates that changes in the inflation rate ________ effect on unemployment.


A) vertical; have no
B) vertical; have an
C) a downward sloping straight line with a 45 degree slope; have an
D) an upward sloping straight line with a 45 degree slope; have an
E) horizontal; have no

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