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What Does a Vertical Phillips Curve in the Long Run

Question 82

Multiple Choice

What does a vertical Phillips curve in the long run imply?


A) ​In the long run, the rate of unemployment will converge toward zero.
B) ​Higher inflation does not permanently reduce the rate of unemployment.
C) ​Higher inflation increases the rate of unemployment.
D) ​Higher inflation lowers the rate of unemployment.

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