Multiple Choice
If the long-run aggregate supply curve is vertical,
A) the economy stays at the natural rate of inflation in the long run.
B) the short-run Phillips curve must be vertical.
C) unemployment and inflation are positively related in the long run.
D) the trade-off between unemployment and inflation cannot be permanent.
E) any changes in the unemployment rate will be permanent.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: Monetary policy can<br>A)shift the short-run trade-off between
Q3: If actual inflation is less than expected
Q4: Figure 13.10 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Figure 13.10
Q5: If the Bank of Canada attempts to
Q6: When inflation is very low, how do
Q8: Figure 13.1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Figure 13.1
Q9: In face of a negative supply shock,
Q10: In 2017 the small country of Notrealia
Q11: A decrease in aggregate demand will<br>A)cause inflation.<br>B)decrease
Q12: During which of the following time periods